Impact of Lower Interest Rate Ceilings on the Lending Market
In Japan’s lending market, our empirical results show that when the supply curve is sloping downward and the demand is excessive, the reduction of the interest rate ceiling causes the social surplus to increase, therefore such a policy can be considered socially desirable.
In preparing this paper, we received a research grant from a Grants-in-Aid for Scientific Research (KAKENHI:26380466) and the Murata Science Foundation. Thank you very much for taking this opportunity.
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