the two output measures give conflicting evidence about the persistence of these effects. For industrial production, the effects are highly temporary: they start to recede after six months and are completely gone after two years. For GDP, the effects are more persistent, lasting at least five years after the shock to distress. This persistence, however , is driven entirely by the experience of japan, which had a large and prolonged slowdown in GDP growth starting around the same time as its financial distress. When japan is excluded from the sample, the results for GDP show little persistence of the effect of financial distress.