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

Author

Listed:
  • R.Anton Braun

    (University of Tokyo)

  • Daisuke Ikeda

    (Northwestern University and Bank of Japan)

  • Douglas H. Joines

    (University of Southern California)

Abstract

During the 1990s, Japan began experiencing demographicchanges that are larger and more rapid than in other OECD countries.These demographic changes will become even more pronouncedin future years. We are interested in understanding the role of lowerfertility rates and aging for the evolution of Japan’s saving rate. Weuse a computable general equilibrium model to analyze the responseof the national saving rate to changes in demographics and total factorproductivity. In our model aging accounts for 2 to 3 percentage points.

Suggested Citation

  • R.Anton Braun & Daisuke Ikeda & Douglas H. Joines, 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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    File URL: http://www.carf.e.u-tokyo.ac.jp/old/pdf/workingpaper/fseries/119.pdf
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    References listed on IDEAS

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    1. R. Anton Braun & Daisuke Ikeda & Douglas H. Joines, 2005. "Saving and Interest Rates in Japan: Why They Have Fallen and Why They Will Remain Low," CARF F-Series CARF-F-028, Center for Advanced Research in Finance, Faculty of Economics, The University of Tokyo.
    2. Selahattin Imrohoroglu & Ayse Imrohoroglu & Kaiji Chen, 2006. "The Japanese Saving Rate," American Economic Review, American Economic Association, vol. 96(5), pages 1850-1858, December.
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    Cited by:

    1. Hagiwara, Reona, 2020. "Seigniorage and Japanese fiscal sustainability: Simulation analysis using an overlapping generations model," Economic Modelling, Elsevier, vol. 84(C), pages 340-356.
    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.

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