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Regional Business Cycle and Growth Features of Japan

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  • Masaru Inaba
  • Keisuke Otsu

Abstract

We study the features of regional business cycles and growth in Japan. We find evidence of unconditional convergence over the 1955-2008 period. For the 1975-2008 period, we find evidence of convergence conditional on TFP gap, population growth, private investment rate and TFP growth. We also find that the consumption-output correlation puzzle exists, which implies that the idiosyncratic income shocks are not shared among prefectures and regions. Our analysis implies that frictions in financial markets are responsible for the low consumption risk-sharing among prefectures.

Suggested Citation

  • Masaru Inaba & Keisuke Otsu, 2017. "Regional Business Cycle and Growth Features of Japan," Studies in Economics 1705, School of Economics, University of Kent.
    • Handle: RePEc:ukc:ukcedp:1705
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    More about this item

    Keywords

    Japanese Economy; Regional Convergence; Regional Business Cycle Synchronization;
    All these keywords.

    JEL classification:

    • E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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