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The (dis)saving behavior of the aged in Japan

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  • Horioka, Charles Yuji

Abstract

In this paper, I survey the previous literature on the saving behavior of the aged in Japan and then present some data on the saving behavior of the aged in Japan that became available recently. To summarize the main findings of this paper, virtually all previous studies as well as the newly available data I analyze find that the retired aged dissave and that even the working aged dissave, at least at advanced ages. Moreover, there has been a sharp increase in the dissaving of the retired aged since 2000, with the increase being due primarily to reductions in social security benefits, increases in consumption expenditures, and increases in taxes and social insurance premiums. These findings are consistent with the life-cycle model and suggest that this model is highly applicable in the case of Japan.

Suggested Citation

  • 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.
  • Handle: RePEc:eee:japwor:v:22:y:2010:i:3:p:151-158
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    1. 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.
    2. Horioka, Charles Yuji & Kasuga, Norihiro & Yamazaki, Katsuyo & Watanabe, Wako, 1996. "Do the Aged Dissave in Japan? Evidence from Micro Data," Journal of the Japanese and International Economies, Elsevier, vol. 10(3), pages 295-311, September.
    3. David N. Weil, 1994. "The Saving of the Elderly in Micro and Macro Data," The Quarterly Journal of Economics, Oxford University Press, vol. 109(1), pages 55-81.
    4. Charles Yuji Horioka, 2002. "Are the Japanese Selfish, Altruistic or Dynastic?," The Japanese Economic Review, Japanese Economic Association, vol. 53(1), pages 26-54.
    5. C. Y. Horioka & H. Fujisaki & W. Watanabe & T. Kouno, 2000. "Are Americans More Altruistic than the Japanese? A U.S.-Japan Comparison of Saving and Bequest Motives," International Economic Journal, Taylor & Francis Journals, vol. 14(1), pages 1-31.
    6. Bernheim, B Douglas & Shleifer, Andrei & Summers, Lawrence H, 1986. "The Strategic Bequest Motive," Journal of Labor Economics, University of Chicago Press, vol. 4(3), pages 151-182, July.
    7. Charles Yuji HORIOKA & Wataru SUZUKI & Tatsuo HATTA, 2007. "Aging, Savings, and Public Pensions in Japan," Asian Economic Policy Review, Japan Center for Economic Research, vol. 2(2), pages 303-319.
    8. Hayashi, Fumio & Ando, Albert & Ferris, Richard, 1988. "Life cycle and bequest savings A study of Japanese and U.S. households based on data from the 1984 NSFIE and the 1983 survey of consumer finances," Journal of the Japanese and International Economies, Elsevier, vol. 2(4), pages 450-491, December.
    9. Horioka, Charles Yuji & Watanabe, Wako, 1997. "Why Do People Save? A Micro-Analysis of Motives for Household Saving in Japan," Economic Journal, Royal Economic Society, vol. 107(442), pages 537-552, May.
    10. Dekle, Robert, 1990. "Do the Japanese elderly reduce their total wealth? A new look with different data," Journal of the Japanese and International Economies, Elsevier, vol. 4(3), pages 309-317, September.
    11. Horioka, C.Y., 1999. "Japan's Public Pension System in the Twenty-First Century," ISER Discussion Paper 0482, Institute of Social and Economic Research, Osaka University.
    12. Ishikawa, Tsuneo, 1988. "Saving and labor supply behavior of aged households in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 2(4), pages 417-449, December.
    13. Horioka, Charles Yuji & Okui, Megumi, 1999. "A U.S.-Japan comparison of the importance and determinants of retirement saving," Economics Letters, Elsevier, vol. 65(3), pages 365-371, December.
    14. Horioka, C.Y., 1991. "Saving in Japan," ISER Discussion Paper 0248, Institute of Social and Economic Research, Osaka University.
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    Cited by:

    1. Iwaisako, Tokuo & 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.
    2. Tokuo Iwaisako & Keiko Okada, 2010. "Understanding the Decline in Japan's Saving Rate in the New Millennium," Macroeconomics Working Papers 23113, East Asian Bureau of Economic Research.
    3. Jane Golley & Rod Tyers, 2011. "Contrasting Giants: Demographic Change And Economic Performance In China And India," CAMA Working Papers 2011-10, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
    4. Ting Yin, 2011. "The gWill h to Save in China," Discussion Papers in Economics and Business 11-24, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP).
    5. Nagayasu, Jun, 2015. "Regional Inflation and Consumption Behaviors," MPRA Paper 68566, University Library of Munich, Germany.
    6. Terada-Hagiwara, Akiko, 2009. "Explaining Filipino Households’ Declining Saving Rate," ADB Economics Working Paper Series 178, Asian Development Bank.
    7. HORI Masahiro & IWAMOTO Koichiro & NIIZEKI Takeshi & SUGA Fumihiko, 2015. "Do the Rich Save More in Japan? Evidence Based on Two Micro Datasets for the 2000s," ESRI Discussion paper series 322, Economic and Social Research Institute (ESRI).
    8. Thomas Flochel & Yuki Ikeda & Harry Moroz & Nithin Umapathi, 2014. "Macroeconomic Implications of Aging in East Asia Pacific," World Bank Other Operational Studies 23026, The World Bank.
    9. Nagayasu, Jun, 2012. "Regional inflation and industrial structure in monetary union," MPRA Paper 37310, University Library of Munich, Germany.
    10. Jun Nagayasu, 2012. "Regional deposits and demographic changes," Applied Economics Letters, Taylor & Francis Journals, vol. 19(10), pages 939-942, July.

    More about this item

    Keywords

    Age structure of the population Aged Aging Consumption Dissaving Elderly Households Japan Life-cycle model Life-cycle hypothesis Long-term care insurance Medical expenses Public pensions Retirement Saving Saving rate Social security;

    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
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth

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