Rebalancing in Japan: The Role of Private Consumption

December 1, 2010

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

Boosting growth through rebalancing is critical for addressing pressures from Japan’s aging population. This paper focuses on one important untapped source of growth - private consumption, and argues that the key to reviving consumption is boosting household disposable income through higher wages, especially in services, and higher property income. The paper also suggests that the impact of higher property income on consumption could be potentially large.

Subject: Consumption, Disposable income, Income, Labor, National accounts, Private consumption, Wages

Keywords: asset bubble collapse, Consumption, consumption response, consumption share, Disposable income, dividend income, Global, Income, Japan, Private consumption, property income, Rebalancing, share in GDP, time series regression, Wages, WP

Pages:
21
Volume:
2010
DOI:
https://doi.org/10.5089/9781455211746.001
Issue:
293
Series:
Working Paper No. 2010/293
Stock No:
WPIEA2010293
ISBN:
9781455211746
ISSN:
1018-5941

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