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The Saving Rate in Japan: Why It Has Fallen and Why It Will Remain Low

Author

Listed:
  • R. Anton Braun

    (Faculty of Economics, University of Tokyo)

  • Daisuke Ikeda

    (Northwestern University and Bank of Japan)

  • Douglas H. Joines

    (Department of Finance and Business Economics, Marshall School of Business, University of Southern California)

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 of the 9 percent decline in the Japanese national saving rate between 1990 and 2000 and persistently depresses Japan's national saving rate in future years.

Suggested Citation

  • R. Anton Braun & Daisuke Ikeda & Douglas H. Joines, 2007. "The Saving Rate in Japan: Why It Has Fallen and Why It Will Remain Low," CIRJE F-Series CIRJE-F-535, CIRJE, Faculty of Economics, University of Tokyo.
    • Handle: RePEc:tky:fseres:2007cf535
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    References listed on IDEAS

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    1. R. Anton Braun & Daisuke Ikeda & Douglas H. Joines, 2006. "Saving and interest rates in Japan: Why they have fallen and why they will remain low," Proceedings, Federal Reserve Bank of San Francisco, issue Jun.
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