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The saving rate in Japan: Why it has fallen and why it will remain low

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  • Douglas H. Joines

    (University of Southern California)

  • R.Anton Braun

    (University of Tokyo)

  • Daisuke Ikeda

    (Northwestern University and Bank of Japan)

Abstract

During the 1990s, Japan began experiencing demographic changes that are larger and more rapid than in other OECD countries. These demographic changes will become even more pronounced in future years. We are interested in understanding the role of lower fertility rates and aging for the evolution of Japan?s saving rate. We use a computable general equilibrium model to analyze the response of the national saving rate to changes in demographics and total factor productivity. In our model aging accounts for 2 to 3 percentage points.

Suggested Citation

  • Douglas H. Joines & R.Anton Braun & Daisuke Ikeda, 2008. "The saving rate in Japan: Why it has fallen and why it will remain low," CARF F-Series CARF-F-117, Center for Advanced Research in Finance, Faculty of Economics, The University of Tokyo.
  • Handle: RePEc:cfi:fseres:cf117
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    References listed on IDEAS

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