Whatever research I have read on Japan’s lost decade I always thought the reason for crisis was – asset market boom (with rising real estate and equity prices), banks lending to the real estate companies and other zombie corporations. Once the house prices fell, all things collapsed. We are seeing the same events in US and other economies whose fin firms were linked to US housing markets. That is why we often compare the 2 events. And then the policy moves deepened the recession (though Japanese policymakers don’t agree, see this as well)
In my quest to find anything on Japanese, I came across this paper from Edward Prescott and Fumio Hayashi. Here is what they say:
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Utopia, you are standing in it! 
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