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Population Aging and Consumption Inequality in Japan

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  • Ohtake, Fumio
  • Saito, Makoto

Abstract

This paper analyzes how consumption inequality within a fixed cohort grows with age using Japanese household microdata. Following the method developed by A. Deaton and C. Paxson (1994), the authors obtain the following results: first, consumption inequality starts to increase at the age of forty; second, younger generations face a more unequal distribution from the beginning of their life-cycle; and third, half of the rapid increase in the economywide consumption inequality during the 1980s was caused by population aging, while one-third was due to the increasing cohort effect. The paper compares the above results with those of Deaton and Paxson. Copyright 1998 by The International Association for Research in Income and Wealth.

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Bibliographic Info

Article provided by International Association for Research in Income and Wealth in its journal Review of Income & Wealth.

Volume (Year): 44 (1998)
Issue (Month): 3 (September)
Pages: 361-81
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:bla:revinw:v:44:y:1998:i:3:p:361-81

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Cited by:
  1. Futoshi Yamauchi-K., 2000. "Labor Earnings Inequality and Learning About Individual Ability: Theory and Evidence from Japan and the United States," Econometric Society World Congress 2000 Contributed Papers 0782, Econometric Society.
  2. Tomoaki Yamada, 2009. "Persistence of income shocks and consumption inequality: A case in Japan," Economics Bulletin, AccessEcon, vol. 29(4), pages 2822-2831.
  3. Ryo Arawatari & Tetsuo Ono, 2008. "Aging, Inequality and Social Security," Discussion Papers in Economics and Business 08-19, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP).
  4. Takeo Hori, 2009. "Inequality and growth: the roles of life expectancy and relative consumption," Journal of Economics, Springer, vol. 96(1), pages 19-40, January.
  5. Saito, Makoto, 1999. "Dynamic Allocation and Pricing in Incomplete Markets: A Survey," Monetary and Economic Studies, Institute for Monetary and Economic Studies, Bank of Japan, vol. 17(1), pages 45-75, May.

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