Household Consumption in Japan – Role of Income and Asset Developments
IMF Working Papers, January 31, 2017
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- Household Consumption in Japan – Role of Income and Asset Developments
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Bibliographic details
- Authors: Erkki Vihriälä
- Published: January 31, 2017
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781475573084.001
Research focus
- Study of Japanese household consumption at a disaggregated level focusing on the role of income and asset dynamics.
- Examination of consumption patterns across labor market groups, age groups, and regions.
Key findings
- Stagnation of real per capita consumption is widespread across labor 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 suggests that assets have become more important in financing consumption.
- Short-term consumption dynamics remain quite sensitive to income growth but not to asset market movements.
Policy-relevant implications
- Rising importance of assets for financing consumption implies fiscal and pension policy interactions with household balance sheets warrant attention.
- Sensitivity of short-term consumption to income growth highlights the role of policies that support labor earnings growth and disposable income for stabilizing consumption.
Subject and keywords
- 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
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- Household Consumption in Japan – Role of Income and Asset Developments