Explaining Japan's Saving Rate
Levy Economics Institute Working Paper No. 135
31 Pages Posted: 14 Aug 1998
Date Written: 1998
This paper examines what I believe to be the significant developments in research over the past ten years on Japan's saving. It is a world that has been turned upside-down during this period. I hope this paper helps clarify the extraordinary changes that have taken place.
The paper is organized as follows. The next section motivates why Japan's saving is important. It is followed by a section which reviews the literature on the standardization of U.S.-Japanese saving rates. Next comes my analysis of the Japan is special argument as applied to saving. After that I look at heterogeneity in saving, an idea which I suspect will dominate the research on Japan's saving for the next several years. Finally I end with a brief summary.
JEL Classification: E21
Suggested Citation: Suggested Citation