IMF Working Papers

Household Consumption in Japan – Role of Income and Asset Developments

By Erkki Vihriälä

January 31, 2017

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Erkki Vihriälä. Household Consumption in Japan – Role of Income and Asset Developments, (USA: International Monetary Fund, 2017) accessed December 26, 2024

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Summary

We study Japanese household consumption at a disaggregated level focusing on the role of income and asset dynamics. Stagnation of real per capita consumption is widespread acrosslabor market groups, age groups and regions. Consumption-to-income ratios have been mildly increasing due to the rising share of pensioners with significant assets. Evidence therefore suggests that assets have become more important in financing consumption. However, the short-term consumption dynamics remain quite sensitive to income growth but not to asset market movements.

Subject: Aging, Consumption, Disposable income, Financial services, Household consumption, Income, National accounts, Real interest rates

Keywords: Asset variable, Consumption, Consumption dynamics, Consumption growth, Consumption plan, Consumption volume, Disposable income, Flexibility, Global, Household consumption, Income, Income concept, Inflation, Labor earnings growth, Real interest rates, WP

Publication Details

  • Pages:

    33

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

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  • Series:

    Working Paper No. 2017/023

  • Stock No:

    WPIEA2017023

  • ISBN:

    9781475573084

  • ISSN:

    1018-5941