TY  - JOUR
AU  - Horioka,Charles Yuji
TI  - The Causes of Japan's "Lost Decade": The Role of Household Consumption
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 12142
PY  - 2006
Y2  - April 2006
UR  - http://www.nber.org/papers/w12142
L1  - http://www.nber.org/papers/w12142.pdf
N1  - Author contact info:
Charles Y. Horioka
Institute of Social and Economic Research
Osaka University
6-1 Mihogaoka, Ibaraki-shi
Osaka-fu 567-0047
JAPAN
Tel: 81-6-6879-8586
Fax: 81-6-6878-2766
E-Mail: horioka@iser.osaka-u.ac.jp
AB  - In this paper, I analyze the causes of the prolonged slowdown of the Japanese economy in the 1990s and find that the stagnation of investment, especially private fixed investment, was the primary culprit.  I then investigate the causes of the stagnation of household consumption during the 1990s and find that the stagnation of household disposable income, the decline in household wealth, and increased uncertainty about the future are among the contributing factors.  Finally, I consider whether demand side factors or supply side factors were more important as causes of the prolonged slowdown of the Japanese economy in the 1990s and conclude that the former (especially misguided government policies) were probably more important.
ER  -