NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

The Consumption Response to Seasonal Income: Evidence from Japanese Public Pension Benefits

Melvin Stephens, Jr., Takashi Unayama

NBER Working Paper No. 16342
Issued in September 2010
NBER Program(s):   ME   PE

Japanese public pension benefits, which were distributed quarterly through February 1990 and every other month since then, induce substantial but predictable income fluctuations. The relative magnitude of the payments combined with the delay between payments yields a stronger test of the Life-Cycle/Permanent Income Hypothesis than in prior studies. Applying two identification strategies to monthly household panel data, we find that consumption significantly responds to quarterly benefit receipt. Additional analysis suggests that our findings cannot be explained by either liquidity constraints or precautionary savings motives.

download in pdf format
   (329 K)

email paper

This paper is available as PDF (329 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w16342

Published: Melvin Stephens & Takashi Unayama, 2011. "The Consumption Response to Seasonal Income: Evidence from Japanese Public Pension Benefits," American Economic Journal: Applied Economics, American Economic Association, vol. 3(4), pages 86-118, October. citation courtesy of

Users who downloaded this paper also downloaded these:
Jappelli and Pistaferri w15739 The Consumption Response to Income Changes
Irwin w16350 Did France Cause the Great Depression?
Gordon and Krenn w16380 The End of the Great Depression 1939-41: Policy Contributions and Fiscal Multipliers
Mian and Sufi w16351 The Effects of Fiscal Stimulus: Evidence from the 2009 'Cash for Clunkers' Program
Aguiar and Bils w16807 Has Consumption Inequality Mirrored Income Inequality?
 
Publications
Activities
Meetings
NBER Videos
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us