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Revitalizing the Japanese Economy by Socializing Risk

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  • Charles Yuji Horioka
  • Reiko Kanda

Abstract

The almost continuous stagnation of the Japanese economy for the past two decades has had an adverse impact on Japanese households from at least threeperspectives: A decline in the standard of living, an increase in risks and uncertainties relating to livelihood, employment, old age, etc., and an increase in income inequality. The majority of economists and policymakers focus their attention on the increase in income inequality. The research discussed here, however,focuses on the increase in risk and uncertainty among households and individuals. Based on this research, we propose a shift to a policy regime centering on thesocialization of risk, which will make possible a transition from a society in which individuals bear excessive risks to one in which risk is shared equitably by society as a whole.

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File URL: http://www.iser.osaka-u.ac.jp/library/dp/2010/DP0799.pdf
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Paper provided by Institute of Social and Economic Research, Osaka University in its series ISER Discussion Paper with number 0799.

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Date of creation: Dec 2010
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Handle: RePEc:dpr:wpaper:0799

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  1. Michael F. Förster & Marco Mira d'Ercole, 2005. "Income Distribution and Poverty in OECD Countries in the Second Half of the 1990s," OECD Social, Employment and Migration Working Papers 22, OECD Publishing.
  2. Charles Yuji Horioka, 2001. "Are the Japanese Selfish, Altruistic, or Dynastic?," CIRJE F-Series CIRJE-F-134, CIRJE, Faculty of Economics, University of Tokyo.
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