## Japan: Selected Issues

_IMF Staff Country Reports, March 30, 2023_

## Source details

**Canonical URL:** [Japan: Selected Issues](https://www.imf.org/en/publications/cr/issues/2023/03/30/japan-selected-issues-531590)

## Other formats

- [Markdown version](/en/publications/cr/issues/2023/03/30/japan-selected-issues-531590/index.md)
- [Structured JSON version](/en/publications/cr/issues/2023/03/30/japan-selected-issues-531590/index.json)
- [Bundle manifest](/en/publications/cr/issues/2023/03/30/japan-selected-issues-531590/bundle-manifest.json)

## Bibliographic details
- Published: March 30, 2023
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400237409.002

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### Executive summary and key findings
- The paper proposes two new drivers of corporate cash holdings and tests them using firm-level data in Japan.
- Private savings have shifted from households to the corporate sector.
- Driver 1: rising share of intangible capital contributes to higher corporate cash holdings.
- Driver 2: declining corporate tax rates contribute to higher corporate cash holdings.
- Empirical results confirm that more intangible capital and lower corporate tax rates contribute to corporate cash holdings, with the tax cuts more relevant for public firms.

### Quantitative magnitudes (empirical results)
- Rising intangible capital in Japan can explain about a quarter of the increase of cash holdings among public firms.
- Rising intangible capital in Japan can explain about 30 percent of the increase of cash holdings among private firms.
- Decreasing corporate tax rates can explain about 4 percent of the increase in cash holdings among public firms.
- The effect of tax cuts is much weaker among private firms due to various subsidies and exemptions for subject matter experts.

### Thematic coverage and keywords
- Subjects: Carbon tax, Financial services, Gender, Income, International organization, Labor, Monetary policy, National accounts, Taxes, Wages, Women, Yield curve
- Keywords: B. emission trend, Carbon tax, Global, Income, JGB yield curve, policy implication, STEM field, STEM worker, Wages, Women, Yield curve

*International Monetary Fund. Japan: Selected Issues. IMF Staff Country Reports 2023, 128 (2023). DOI: https://doi.org/10.5089/9798400237409.002*

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## Content in this bundle

- **Japan: Selected Issues; IMF Country Report No. 23/128; March 7, 2023**
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  - [Japan: Selected Issues; IMF Country Report No. 23/128; March 7, 2023 (PDF)](/-/media/files/publications/cr/2023/english/1jpnea2023002.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/cr/issues/2023/03/30/japan-selected-issues-531590_