Why Do People Save? A Micro‐Analysis of Motives for Household Saving in Japan

16 Pages Posted: 31 Jan 2012

See all articles by Charles Yuji Horioka

Charles Yuji Horioka

Kobe University; National Bureau of Economic Research; Asian Growth Research Institute; Osaka University

Wakö Watanabe

affiliation not provided to SSRN

Date Written: May 1997


This paper estimates the contribution of net saving for each of twelve motives to overall household saving in Japan using micro data from a Japanese Government survey and finds that net saving for the retirement and precautionary motives, both of which are consistent with the life‐cycle model, are of dominant importance. It also finds that the saving motives of Japanese households vary greatly by age and that they save at each life stage for motives that are appropriate for that life stage. These findings suggest that the life‐cycle model is highly applicable in the case of Japan.

Suggested Citation

Horioka, Charles Yuji and Watanabe, Wakö, Why Do People Save? A Micro‐Analysis of Motives for Household Saving in Japan (May 1997). The Economic Journal, Vol. 107, Issue 442, pp. 537-552, 1997. Available at SSRN: https://ssrn.com/abstract=1995926 or http://dx.doi.org/10.1111/j.1468-0297.1997.tb00026.x

Charles Yuji Horioka (Contact Author)

Kobe University ( email )

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Asian Growth Research Institute ( email )

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Osaka University ( email )

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Wakö Watanabe

affiliation not provided to SSRN

No Address Available

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