IDEAS home Printed from https://ideas.repec.org/a/spr/jecrev/v67y2016i4d10.1111_jere.12107.html
   My bibliography  Save this article

Do the Rich Save More in Japan? Evidence Based on two Micro Data Sets for the 2000s

Author

Listed:
  • Masahiro Hori

    (Cabinet Office)

  • Koichiro Iwamoto

    (Cabinet Office
    Aichi Toho University)

  • Takeshi Niizeki

    (Cabinet Office
    Ehime University)

  • Fumihiko Suga

    (Cabinet Office)

Abstract

Using two household surveys, this paper investigates whether the saving rates of richer households are higher than those of poorer households in Japan. We construct a number of proxies for lifetime wealth, including those original to this study, and find marginally positive correlations between saving rates and lifetime wealth for working age households. We further find that the relationship between saving rates and lifetime wealth differs depending on the life stage of individual households. Older households with higher lifetime wealth appear to be dissaving to some extent, which is more or less consistent with the lifecycle model of consumption.

Suggested Citation

  • Masahiro Hori & Koichiro Iwamoto & Takeshi Niizeki & Fumihiko Suga, 2016. "Do the Rich Save More in Japan? Evidence Based on two Micro Data Sets for the 2000s," The Japanese Economic Review, Springer, vol. 67(4), pages 474-494, December.
    • Handle: RePEc:spr:jecrev:v:67:y:2016:i:4:d:10.1111_jere.12107
    DOI: 10.1111/jere.12107
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1111/jere.12107
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1111/jere.12107?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Hori, Masahiro & 堀, 雅博 & Iwamoto, Koichiro & 岩本, 光一郎 & Hamaaki, Junya & 濱秋, 純哉 & Murata, Keiko, 2013. "Family and lifestyle survey: objectives, features of the 2011 survey, and questionnaire," CIS Discussion paper series 588, Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University.
    2. Horioka, Charles Yuji, 1990. "Why is Japan's household saving rate so high? A literature survey," Journal of the Japanese and International Economies, Elsevier, vol. 4(1), pages 49-92, March.
    3. Sule Alan & Kadir Atalay & Thomas F. Crossley, 2006. "Do the Rich Save More in Canada?," Quantitative Studies in Economics and Population Research Reports 406, McMaster University.
    4. Fumio Hayashi, 1986. "Why Is Japan's Saving Rate So Apparently High?," NBER Chapters, in: NBER Macroeconomics Annual 1986, Volume 1, pages 147-234, National Bureau of Economic Research, Inc.
    5. Hori, Masahiro & Iwamoto, Koichiro & Niizeki, Takeshi & Hamaaki, Junya & Murata, Keiko, 2013. "The Second “Family and Lifestyle Survey”: Objectives, Features of the Survey, and Questionnaire," CIS Discussion paper series 607, Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University.
    6. Milton Friedman, 1957. "A Theory of the Consumption Function," NBER Books, National Bureau of Economic Research, Inc, number frie57-1, March.
    7. Karen E. Dynan & Jonathan Skinner & Stephen P. Zeldes, 2004. "Do the Rich Save More?," Journal of Political Economy, University of Chicago Press, vol. 112(2), pages 397-444, April.
    8. Milton Friedman, 1957. "Introduction to "A Theory of the Consumption Function"," NBER Chapters, in: A Theory of the Consumption Function, pages 1-6, National Bureau of Economic Research, Inc.
    9. Douglas Staiger & James H. Stock, 1997. "Instrumental Variables Regression with Weak Instruments," Econometrica, Econometric Society, vol. 65(3), pages 557-586, May.
    10. Horioka, Charles Yuji, 2010. "The (dis)saving behavior of the aged in Japan," Japan and the World Economy, Elsevier, vol. 22(3), pages 151-158, August.
    11. Junya HAMAAKI & Masahiro HORI & Koichiro IWAMOTO & Saeko MAEDA & Keiko MURATA & Takeshi NIIZEKI, 2015. "Estimation of Real Assets Holdings by Japanese Households Based on the Microdata from the Family Income and Expenditure Survey:Estimation Methods and Illustrative Tables and Figures(in Japanese)," Economic Analysis, Economic and Social Research Institute (ESRI), vol. 189, pages 65-96, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Iwaisako, Tokuo & 祝迫, 得夫 & Ono, Arito & Saito, Amane & Tokuda, Hidenobu, 2016. "Impact of population aging on household savings and portfolio choice in Japan," HIT-REFINED Working Paper Series 61, Institute of Economic Research, Hitotsubashi University.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Latsos Sophia & Schnabl Gunther, 2021. "Determinants of Japanese Household Saving Behavior in the Low-Interest Rate Environment," The Economists' Voice, De Gruyter, vol. 18(1), pages 81-99, December.
    2. Sule Alan & Kadir Atalay & Thomas F. Crossley, 2006. "Do the Rich Save More in Canada?," Quantitative Studies in Economics and Population Research Reports 406, McMaster University.
    3. Wang, Xin & Wen, Yi, 2012. "Housing prices and the high Chinese saving rate puzzle," China Economic Review, Elsevier, vol. 23(2), pages 265-283.
    4. Néstor Gandelman, 2015. "A Comparison of Saving Rates: Micro Evidence from Seventeen Latin American and Caribbean Countries," IDB Publications (Working Papers) 90556, Inter-American Development Bank.
    5. Bertrand Garbinti & Pierre Lamarche, 2014. "Les hauts revenus épargnent‑ils davantage ?," Économie et Statistique, Programme National Persée, vol. 472(1), pages 49-64.
    6. Gandelman, Néstor, 2015. "A Comparison of Saving Rates: Micro Evidence from Seventeen Latin American and Caribbean Countries," IDB Publications (Working Papers) 7136, Inter-American Development Bank.
    7. Antoine Bozio & Carl Emmerson & Cormac O'Dea & Gemma Tetlow, 2013. "Savings and wealth of the lifetime rich: evidence from the UK and US," IFS Working Papers W13/30, Institute for Fiscal Studies.
    8. Nestor Gandelman, "undated". "A comparison of saving rates: micro evidence from sixteen Latin American andCaribbean countries," Documentos de Investigación 101, Universidad ORT Uruguay. Facultad de Administración y Ciencias Sociales.
    9. Bunting, David, 2009. "The saving decline: Macro-facts, micro-behavior," Journal of Economic Behavior & Organization, Elsevier, vol. 70(1-2), pages 282-295, May.
    10. Mr. Christopher Carroll & Mr. Martin Sommer & Mr. Jiri Slacalek, 2012. "Dissecting Saving Dynamics: Measuring Wealth, Precautionary, and Credit Effects," IMF Working Papers 2012/219, International Monetary Fund.
    11. Christian A Belabed & Thomas Theobald & Till van Treeck, 2018. "Income distribution and current account imbalances [Notes on capacity utilisation, distribution and accumulation]," Cambridge Journal of Economics, Oxford University Press, vol. 42(1), pages 47-94.
    12. Horioka, Charles Yuji, 2020. "Does the Selfish Life-Cycle Model Apply in the Case of Japan?," AGI Working Paper Series 2020-04, Asian Growth Research Institute.
    13. Haagsma, Rein, 2018. "Income inequality and saving in a class society: The role of ordinal status," Economics Discussion Papers 2018-12, Kiel Institute for the World Economy (IfW Kiel).
    14. Schulz, Jan & Mayerhoffer, Daniel M., 2021. "A network approach to consumption," BERG Working Paper Series 173, Bamberg University, Bamberg Economic Research Group.
    15. Rannenberg, Ansgar, 2017. "The effect of fiscal policy and forward guidance with preferences over wealth," VfS Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking 168070, Verein für Socialpolitik / German Economic Association.
    16. Debajyoti Chakrabarty & Hajime Katayama & Hanna Maslen, 2008. "Why Do the Rich Save More? A Theory and Australian Evidence," The Economic Record, The Economic Society of Australia, vol. 84(s1), pages 32-44, September.
    17. Antoine BozioBy & Carl Emmerson & Cormac O’Dea & Gemma Tetlow, 2017. "Do the rich save more? Evidence from linked survey and administrative data," Oxford Economic Papers, Oxford University Press, vol. 69(4), pages 1101-1119.
    18. Charles Yuji Horioka, 2021. "Is the selfish life-cycle model more applicable in Japan and, if so, why? A literature survey," Review of Economics of the Household, Springer, vol. 19(1), pages 157-187, March.
    19. Xin Wang & Yi Wen, 2011. "Can rising housing prices explain China’s high household saving rate?," Review, Federal Reserve Bank of St. Louis, vol. 93(Mar), pages 67-88.
    20. repec:hal:wpspec:info:hdl:2441/5l6uh8ogmqildh09h6m8hj429 is not listed on IDEAS
    21. Luigi Guiso & Monica Paiella & Ignazio Visco, 2005. "Do capital gains affect consumption? Estimates of wealth effects from Italian households� behavior," Temi di discussione (Economic working papers) 555, Bank of Italy, Economic Research and International Relations Area.

    More about this item

    Keywords

    D12; D91;

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:jecrev:v:67:y:2016:i:4:d:10.1111_jere.12107. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.