We investigate full prepayments of Japanese residential mortgages during a ten-year period from 1996 to 2005. This investigation is important because the amount of mortgages outstanding in Japan is huge, yet the study on their prepayments is very limited. This period from 1996 to 2005 was...

This paper presents a model economy where small changes in exogenous variables produce much larger impacts on macro variables including asset prices of countries with a poor corporate governance system. These exogenous variables include world interest rates (or market discipline), the initial...