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

31 Pages Posted: 29 Jan 2009

See all articles by R. Anton Braun

R. Anton Braun

University of Tokyo - Faculty of Economics

Daisuke Ikeda

Bank of Japan

Douglas H. Joines

University of Southern California - Marshall School of Business

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Abstract

Japan is in the midst of a demographic transition that is larger and more rapid than other OECD countries. We are interested in understanding the role of lower fertility rates and aging for the evolution of Japan's national saving rate. We use a computable general equilibrium model to analyze the response of the saving rate to changes in demographics and total factor productivity. In our model demographic factors account for 23 percentage points of the 9% decline in the saving rate between 1990 and 2000 and persistently depress the saving rate in future years.

Suggested Citation

Braun, R. Anton and Ikeda, Daisuke and Joines, Douglas H., The Saving Rate in Japan: Why it Has Fallen and Why it Will Remain Low. International Economic Review, Vol. 50, Issue 1, pp. 291-321, February 2009, Available at SSRN: https://ssrn.com/abstract=1333893 or http://dx.doi.org/10.1111/j.1468-2354.2008.00531.x

R. Anton Braun (Contact Author)

University of Tokyo - Faculty of Economics ( email )

7-3-1 Hongo, Bunkyo-ku
Tokyo 113-0033
Japan

Daisuke Ikeda

Bank of Japan ( email )

2-1-1, Hongoku-cho
Nihonbashi
Chuo-ku, Tokyo, 103-8660
Japan

Douglas H. Joines

University of Southern California - Marshall School of Business ( email )

Hoffman Hall 702 H
Los Angeles, CA 90089
United States
213-740-6510 (Phone)
213-740 6650 (Fax)

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