Relaxation Of Regulation Research Articles

Bank regulations, bank competition and bank risk-taking: Evidence from Japan

We study the relaxation of the capital requirements regulation in Japan around the global financial crisis of 2007–08, which represents a change in bank regulation, to test whether an effect of bank competition on risk-taking is moderated by a change in bank regulation. Although this particular change in bank regulation in Japan was primarily meant to help stabilize the banking system, we show that there is evidence for some spillover effects on bank risk-taking. We find that bank competition is positively associated with ex ante bank risk-taking, roughly measured as loan growth and the interest rate margin. We show that the relaxation of the capital adequacy requirement affects the influence of bank competition on bank risk-taking. With domestically active banks getting more preferential treatments from the regulatory change, the relaxation of the regulation appears to have the differential effects on bank risk-taking across the domestically active banks and the internationally active banks in Japan.

The real estate crash of 2007-8 as a systemic failure

This article considers the 2007-8 real estate market as a complex adaptive system. The article begins with a discussion of its perception of a system. Given that definition, system elements are reviewed. Agents include mortgage holders, lending institutions of a variety of forms, insurers, and regu latory agencies. The focus is on the US with some comparison to the UK and Canada. This system was affected by economics with heavy governmental influence. A market that had been highly stable for decades reacted very negatively to the influences of financial engineering seeking to take advantage of expedient opportunities. The complex interactions of financial and governmental actors led to the apparent (and most likely temporary) disappearance of many paper fortunes, as well as leading to the demise of some established banking institutions and foreclosure of many homes in certain areas. Conversely, Canadian real estate markets had less relaxation of regulation, and experienced fewer risky mortgages. The evolution of the real estate system from a systems perspective is described, with analysis of interactions among actors.

Transfer Pricing and Tax Havens for Attracting FDI

Enterprises seek profit maximization that comprises tax optimization which, within multinationals, includes the shifting of profits from the less to the most favorable countries using transfer pricing of intra-group transactions and tax havens as the “middle man”. Because FDI is an important engine of economic growth of, at least, the less developed countries and multilateral agreements impose limitations on the allocation of direct subsidies to businesses, in our research we explore the hypothesis that countries could use the relaxation of regulation on transfer pricing as a fiscal policy instrument for attracting FDI. Using a good composed of two parts, the brand and the hardware, and consumers with concave utility on the brand, we conclude that countries can use the relaxation of regulatory acceptance of transfer pricing to attract FDI when 1) the creation and development of the brand is an important part in the total cost of the good and 2) the increase in production costs of relocating the production from the most to the less developed country is not very large. Our results seem in accordance with empirical evidence.

An Impact Analysis of Policy Change in the Game Industry -the Arcade Game Industry approach-

The arcade game market is 2nd big market in the world following console game market. It is a driving force of growth for game industry but its Korean case was decreasing growth of game industry by various kinds of factors. Therefore, it is placed too much emphasis on online game industry and it lost industry growth power. The characteristics of arcade game are spatiality, expandability of device, rewardability, amusemenability. The importance of arcade game are development of new device and freedom of application it but it is restricted by prior deliberation and regulation of industry in korea. Many problems arise from classifying speculation device to arcade game and relaxation of regulation. In this paper, we analyze effectiveness from policy change in Arcade game industry, especially we focused on regulation policy. Also, we found problems and suggested alternatives by comparision on policy of foreign country.

Restrictions Relating to Investment in Entities Holding Infrastructure in Japan

On May 17, 2010, the Growth Strategy Meeting set up in the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) issued a report on growth strategy (“GSM Report”). The GSM Report recommends as a basic principle the creation of a new market environment consisting of the following pillars: (i) intensive allocation of public investment according to costeffectiveness; (ii) relaxation of regulation, and facilitation of private sector proposals and bold management; (iii) active use of private sector’s wisdom and fund through public-private partnership (PPP) and private fund; and (iv) cooperation with private sector and promotion of talent. With regard to an international operation and cooperation with private sector, the GSM Report recommends: (a) formation of infrastructure fund; and (b) use of PPP and Private Finance Initiative (PFI). The infrastructure mentioned in the GSM Report includes airport infrastructure, port infrastructure, highway infrastructure, railway infrastructure, and sewage infrastructure. The measures for facilitation of PPP and PFI mentioned in the GSM Report includes introduction of concession method in infrastructure sector, privatization of government-affiliated corporation, improvement of tax for promotion of PFI, and measures allowing the participant to sell to a third party its shares in special purpose vehicle used in the PPP and PFI. On June 1, 2010, the Ministry of Economy, Trade and Industry (METI) released a report on the Industry Structure Vision 2010, which recommends for improvement of industrial finance such measures as improvement of tax for foreign fund and tax exemption or corporate bond interest. We here review environment on foreign direct investment in Japan and investment in infrastructure.

Digital Art and Experimental Color Systems at Bell Laboratories, 1965–1984: Restoring Interdisciplinary Innovations to Media History

AT&T's Bell Laboratories produced a prolific number of innovative digital art and experimental color systems between 1965 and 1984. However, due to repressive regulation, this work was hidden from the public. Almost two decades later, when Bell lifted its restrictions on creative work not related to telephone technologies, the atmosphere had changed so dramatically that despite a relaxation of regulation, cutting-edge projects were abandoned. This paper discusses the struggles encountered in interdisciplinary collaborations and the challenge to use new media computing technology to make experimental art at Bell Labs during this unique time period, now largely lost to the history of the media arts.

Strategic management of the Tokyo taxi cab industry: an exploratory study

AbstractTaxicabs are an indispensable means of transportation in Tokyo, as they provide a 24/7 door‐to‐door service for a daily average of 1.3 million people. In 2002, legislation was introduced to abolish restrictions on the number of taxicabs on the road. This relaxation of regulation, together with the corresponding recession, raised new issues such as increasing cab numbers and reducing drivers' wages.The wide variety of stakeholders involved within the taxicab industry have conflicting positions, resulting in little agreement on the possible way forward. An exploratory study was therefore undertaken in order to investigate the management of Tokyo's taxicab operations in order to formulate strategies for improving the service. Two related papers report on the study.This paper starts by providing an understanding of the current situation, examining the roles of the major stakeholders and outlining day‐to‐day operations.Academic frameworks, for example PEST, Critical Success Factors and the Cultural Web, from the strategic management literature, are used to identify the structure of the industry and analyse the environment in which it operates.The results found that Tokyo's taxicab industry is highly efficient operationally, due to the high standard of customer service, effective driver's learning scheme and active use of IT. However, a paradoxical situation has been identified where the demand for cabs has decreased even though the available vehicles have increased. Finally, a uniform method to measure the level of taxicab service is recommended. Copyright © 2007 John Wiley & Sons, Ltd.

Toward Truly Open Skies

the Europe-North America internation-al market is the largest air transport mar-ket in the world, accounting for 419,961billion revenue-passenger-kilometers in2000. It has also traditionally been one ofthe most profitable, and it connects theworld’s largest economic units — the European Union and theNorth American Free Trade Area. Because of its size and vital-ity, there have been numerous calls for the relaxation of regu-lation that limits U.S. and European carriers from expandingservice to each other’s nations.The belief that there should be free trade in services acrossthe Atlantic is not new. There has been a steady move towardthe global liberalization of air transportation markets since t helate 1970s, when the United States initiated the deregulation o fits domestic freight and passenger markets. However, the pat-tern of change has not been consistent across countries.In recent years, a major coalition of interests involving air-lines, user groups, and governments has advocated a freetransatlantic market in air services. But it will not be easy t o cre-ate a fully open transatlantic air transportation market. Thereare significant political obstacles that would need to be over-come, and they — in practice — would seem to dominate theagenda, at least in the short term.But even if the institutional difficulties could be circum-vented, EU airlines would have difficulty competing in an open

Geographical segmentation in Japanese bank loan markets

This paper examines whether Japanese bank loan markets are segmented geographically. Studying regional banks and shinkin banks, we examine whether the demand and supply factors of each prefecture have an effect on the interest rates of that prefecture. The results suggest that the markets for regional banks are not segmented, but those of shinkin banks are. We also find that interest rates of adjacent prefectures do not differ very much, while those between distant prefectures do. We suggest that relaxation of regulation on geographical operations should promote competition and lower loan interest rates in rural Japan.

Surveillance of Genetic Engineering: Will Restraints continue to Loosen?

Government oversight of genetic engineering in the U.S. is on the verge of shifting its concerns from safety in experimentation to areas such as gene therapy and other uses that affect humans directly. To the relief of industrial observers, this oversight will probably focus on clinical applications rather than the manufacturing of substances. Few similiar signs are apparent elsewhere, but other countries are keeping an eye on U.S. developments. Around the world, the trend toward relaxation of regulation continues.