Sep 22, 2012

Saving Rate in Japan

A reduction in the saving rate usually affects the amount of capital that a country accumulates, and as a consequence the amount of income per person. Recently the saving rate has decreased in developed countries. This might be due to a change in preference (individuals prefer to consume today rather than later, and this behavior is stronger now). 

A recent paper (Iwaisako and Okada, August 2012, a 2010 draft is here ) explores the reduction in the saving rate in Japan in the 2000s. The authors argue that this is due mainly to the reduction in income as a consequence of the financial crisis in Asia in the late 1990s, which has affected mainly older people. 
Saving rate in Japan:
Saving rate by age group:
Saving rate, age 60 and over:

Even though the saving rate of households has decreased, the saving rate of corporations has increased. The later is due to the legal restructuring that took place after the crisis. 

No comments:

Post a Comment