The (Dis)saving Behavior of the Aged in Japan
In this paper, I survey the previous literature on the saving behavior of the aged in Japan and then present some survey data on the saving behavior of the aged in Japan that became available recently. To summarize the main findings of this paper, virtually all previous studies as well as the newly available data I analyze find that the retired aged dissave and that even the working aged dissave, at least at advanced ages. Moreover, there has been a sharp increase in the dissaving of the retired aged since 2000, with the increase being due primarily to reductions in social security benefits, increases in consumption expenditures, and increases in taxes and social insurance premiums. These findings are consistent with the life-cycle model and suggest that this model is highly applicable (and becoming increasingly applicable over time) in the case of Japan.
I am indebted to James Albrecht, Robert Dekle, Eric French, Minchung Hsu, John Bailey Jones, Sung Jin Kang, Wataru Kureishi, Tsutomu Miyagawa, Oleksandr Movshuk, Junichi Nomura, Masao Ogaki, Shizuka Sekita, Etsuro Shioji, Midori Wakabayashi, Kenichi Ueda, Yi Wen, Shoichi Yamashita, and the participants of the Third Workshop on Comparative Analysis of Consumption and Saving Behavior in East Asian Countries, held at the International Centre for the Study of East Asian Development (ICSEAD) in Kitakyushu, Japan, of the Workshop on the Aging Economy held at the Aging Economy Research Center, National Cheng Kung University, Tainan, Taiwan, of the Tsinghua Workshop on Macroeconomics held at the School of Economics and Management, Tsinghua University, Beijing, China, of the Far East and South Asia Meeting of the Econometric Society (FESAMES) held at the University of Tokyo, and of the 11th Macroeconomics Conference held in Osaka for their valuable comments and assistance and to the Ministry of Education, Culture, Sports, Science, and Technology of the Japanese Government for Grant-in-Aid for Scientific Research Category B (topic number 18330068) and Category S (topic number 20223004) and to the Global Center of Excellence (GCOE) Program of the Graduate School of Economics and the Institute of Social and Economic Research of Osaka University, all of which supported this research. The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of Economic Research.
Horioka, Charles Yuji, 2010. "The (dis)saving behavior of the aged in Japan," Japan and the World Economy, Elsevier, vol. 22(3), pages 151-158, August. citation courtesy of