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- Title
Discussion Paper: Who Should Take Responsibility for Unexpected Interest Changes? Lesson from the Privatization of Japanese Railroad System.
- Authors
Fukui, Yoshitaka; Oda, Kyoji
- Abstract
Due to inefficient operations exacerbated by political intervention, Japanese National Railways (JNR) was dissolved in 1987 after piling up huge debts. It was divided into six regional companies. The three Mainland Companies inherited debts as well as physical assets, while the three Island Companies which are located in sparsely populated areas inherited no debts and were also given financial assets. The Island Companies were expected to lose money in rail operations but make up for the loss with financial income. However, Japan's low interest rates have jeopardized this seemingly ingenious scheme. This raises the question: who should take responsibility for unexpected interest changes?
- Subjects
JAPAN; RESPONSIBILITY; INTEREST (Finance); PRIVATIZATION; RAILROADS; NIHON Kokuyuu Tetsudo
- Publication
Networks & Spatial Economics, 2012, Vol 12, Issue 2, p263
- ISSN
1566-113X
- Publication type
Article
- DOI
10.1007/s11067-009-9116-9