Household Consumption in Japan – Role of Income and Asset Developments

January 31, 2017

Preview Citation

Format: Chicago

Erkki Vihriälä. Household Consumption in Japan – Role of Income and Asset Developments, (USA: International Monetary Fund, 2017) accessed September 21, 2024

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

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:

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DOI:

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Issue:

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Series:

Working Paper No. 2017/023
Stock No:

WPIEA2017023
ISBN:

9781475573084
ISSN:

1018-5941

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