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A Comparison of the Japanese and U.S. Business Cycles

Author

Listed:
  • R. Anton Braun

    (Faculty of Economics, University of Tokyo)

  • Julen Esteban-Pretel

    (Faculty of Economics, University of Tokyo)

  • Toshihiro Okada

    (School of Economics, Kwansei Gakuin University)

  • Nao Sudou

    (Bank of Japan and Boston University)

Abstract

The paper constructs a consistent set of quarterly Japanese data for the 1960-2002 sample period and compares properties of the Japanese and U.S. business cycles. We document some important differences in the adjustment of labor input between the two countries. In Japan most most of the adjustment is in hours per worker of males and females and also in employment of female. In the U.S. most of the adjustment is in employment of both males and females. We formulate, estimate and analyze a model that makes distinction between the intensive and extensive margin and allows for gender differences in labor supply. A weak empirical correlation between hours per worker and employment in Japanese data is a puzzle for our theory.

Suggested Citation

  • R. Anton Braun & Julen Esteban-Pretel & Toshihiro Okada & Nao Sudou, 2005. "A Comparison of the Japanese and U.S. Business Cycles," CIRJE F-Series CIRJE-F-392, CIRJE, Faculty of Economics, University of Tokyo.
  • Handle: RePEc:tky:fseres:2005cf392
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    References listed on IDEAS

    as
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    21. Rogerson, Richard, 1988. "Indivisible labor, lotteries and equilibrium," Journal of Monetary Economics, Elsevier, pages 3-16.
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    Citations

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    Cited by:

    1. Kosaka Michiru Sakane, 2013. "News-driven international business cycles," The B.E. Journal of Macroeconomics, De Gruyter, pages 1-43.
    2. repec:eee:japwor:v:42:y:2017:i:c:p:45-55 is not listed on IDEAS
    3. Keisuke Otsu, 2011. "Accounting for Japanese Business Cycles: A Quest for Labor Wedges," Monetary and Economic Studies, Institute for Monetary and Economic Studies, Bank of Japan, vol. 29, pages 143-170, November.
    4. Sugo, Tomohiro & Ueda, Kozo, 2008. "Estimating a dynamic stochastic general equilibrium model for Japan," Journal of the Japanese and International Economies, Elsevier, pages 476-502.
    5. Maria Teresa Punzi, 2013. "Housing Market and Current Account Imbalances in the International Economy," Review of International Economics, Wiley Blackwell, pages 601-613.
    6. Otsu, Keisuke, 2011. "Working Effort and the Japanese Business Cycle," Economic Review, Hitotsubashi University, vol. 62(1), pages 20-29, January.
    7. Shuhei Aoki & Julen Esteban-Pretel & Tetsuji Okazaki & Yasuyuki Sawada, 2009. "The Role of the Government in Facilitating TFP Growth during Japan's Rapid Growth Era," CIRJE F-Series CIRJE-F-622, CIRJE, Faculty of Economics, University of Tokyo.
    8. Naoko Hara & Hibiki Ichiue, 2010. "Real-time Analysis on Japan's Labor Productivity," Bank of Japan Working Paper Series 10-E-7, Bank of Japan.
    9. Aoki, Shuhei & Kitahara, Minoru, 2008. "Measuring the Dynamic Cost of Living Index from Consumption Data," MPRA Paper 9802, University Library of Munich, Germany.
    10. Hara, Naoko & Ichiue, Hibiki, 2011. "Real-time analysis on Japan's labor productivity," Journal of the Japanese and International Economies, Elsevier, pages 107-130.
    11. Esteban-Pretel, Julen & Nakajima, Ryo & Tanaka, Ryuichi, 2010. "TFP growth slowdown and the Japanese labor market in the 1990s," Journal of the Japanese and International Economies, Elsevier, pages 50-68.
    12. Gunji, Hiroshi & Miyazaki, Kenji, 2011. "Estimates of average marginal tax rates on factor incomes in Japan," Journal of the Japanese and International Economies, Elsevier, pages 81-106.
    13. Julen ESTEBAN-PRETEL & NAKAJIMA Ryo & TANAKA Ryuichi, 2009. "TFP Growth Slowdown and the Japanese Labor Market in the 1990s," Discussion papers 09003, Research Institute of Economy, Trade and Industry (RIETI).
    14. Ko, Jun-Hyung & Miyazawa, Kensuke & Vu, Tuan Khai, 2012. "News shocks and Japanese macroeconomic fluctuations," Japan and the World Economy, Elsevier, pages 292-304.
    15. repec:eee:rensus:v:77:y:2017:i:c:p:1261-1271 is not listed on IDEAS
    16. Ko, Jun-Hyung & Murase, Koichi, 2013. "Great Moderation in the Japanese economy," Japan and the World Economy, Elsevier, pages 10-24.

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