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The Decline Of Japan'S Saving Rate And Demographic Effects

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  • MAIKO KOGA

Abstract

This paper investigates the phenomenon in which Japan's household saving rate showed a sharp decline even during the long stagnation period called “the lost decade.” Our empirical results show that the sharp decline in the saving rate in the 1990s can be explained by the significant impact of demographic factors. Furthermore, the estimated life cycle curve is hump shaped, meaning that the prediction of the life cycle model is confirmed with time series data on the Japanese saving rate.

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  • Maiko Koga, 2006. "The Decline Of Japan'S Saving Rate And Demographic Effects," The Japanese Economic Review, Japanese Economic Association, vol. 57(2), pages 312-321, June.
    • Handle: RePEc:bla:jecrev:v:57:y:2006:i:2:p:312-321
    DOI: 10.1111/j.1468-5876.2006.00369.x
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    References listed on IDEAS

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    1. Attanasio, Orazio P, et al, 1999. "Humps and Bumps in Lifetime Consumption," Journal of Business & Economic Statistics, American Statistical Association, vol. 17(1), pages 22-35, January.
    2. Clifford L.F. Attfield & Edmund Cannon, 2003. "The Impact of Age Distribution Variables on the Long Run Consumption Function," Bristol Economics Discussion Papers 03/546, School of Economics, University of Bristol, UK.
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    Cited by:

    1. Ichiro Muto & Takemasa Oda & Nao Sudo, 2016. "Macroeconomic Impact of Population Aging in Japan: A Perspective from an Overlapping Generations Model," IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 64(3), pages 408-442, August.
    2. Yoko Mimura & Kim Love-Myers & Janine E. Aronson, 2015. "Relationship Between Female Illness And Savings: Evidence From Japanese Women," The International Journal of Business and Finance Research, The Institute for Business and Finance Research, vol. 9(4), pages 1-10.
    3. Satoshi Shimizutani & Noriko Inakura, 2008. "Did lower interest rates reduce Japan's household savings rate since the 1990s? Evidence based on the maturation of postal savings certificates," Economics Bulletin, AccessEcon, vol. 5(22), pages 1-8.
    4. Yoko Mimura, 2014. "The Relationship Between Life Satisfaction Among Wives and Financial Preparedness of Households in Japan," Journal of Family and Economic Issues, Springer, vol. 35(4), pages 532-541, December.
    5. Agnese, Pablo & Sala, Hector, 2009. "The fading 1990s in Japan: Driving forces behind the unemployment upsurge," International Review of Economics & Finance, Elsevier, vol. 18(3), pages 428-439, June.
    6. Wang, Dong & Zhang, Qiqi & Yang, Jingya, 2022. "Higher education expansion and national savings level: Evidence from macro data," International Review of Economics & Finance, Elsevier, vol. 82(C), pages 92-103.

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