Author: Mototsugu ShintaniPublisher:
ISBN:
Category :
Languages : en
Pages : 23
Book Description
Excess Smoothness of Consumption in Japan
Author: Mototsugu Shintani'Risky Habits' and the Marginal Propensity to Consume Out of Permanent Income, Or, How Much Would a Permanent Tax Cut Boost Japanese Consumption?
Author: Chris CarrollPublisher:
ISBN:
Category : Consumer behavior
Languages : en
Pages : 34
Book Description
Papers in variety of disparate literatures have recently suggested that habit formation in consumption may explain several empirical puzzles, ranging from the level and cyclical variability of the equity premium (Abel (1990,1999); Constantinides (1990); Jermann (1998); Campbell and Cochrane (1999)) to the excess smoothness' of aggregate consumption (Fuhrer (2000)) to the apparent fact that increases in economic growth cause subsequent increases in aggregate saving rates (Carroll and Weil (1994); Bosworth (1993); Attanasio, Picci, and Scorcu (2000); Rodrik (1999); Loayza, Schmidt-Hebbel, and Servn (2000)). This paper examines an implication of these models that has mostly been overlooked: Habits strong enough to solve these puzzles imply an immediate marginal propensity to consume out of permanent shocks of much less than one. When the model is calibrated to roughly match the rise in the Japanese saving rate over the postwar period, it implies that the immediate MPC out of permanent tax cuts may be as low as 30 percent, suggesting that calls for permanent income tax cut as a quick means of stimulating aggregate demand in Japan may be misguided
Tax Policy and Consumer Spending
Author: Katsunori WatanabePublisher:
ISBN:
Category : Consumer behavior
Languages : en
Pages : 66
Book Description
This paper studies the extent to which the impact of tax policy on consumer spending differs between temporary and permanent, as well as anticipated and unanticipated tax changes. To discriminate between them, we use institutional information such as legal distinction between temporary and permanent tax changes, as well as timing of policy announcement and implementation. We find that the impact of temporary changes is significantly smaller than the impact of permanent changes. We also find that more than 80 per cent of Japanese consumers, including those who distinguish between temporary and permanent tax changes, respond to tax changes at the time of their implementation and not at the time of a policy announcement. We suggest an interpretation that these consumers follow a near-rational decision rule.
Rebalancing in Japan
Author: Kiichi TokuokaPublisher: International Monetary Fund
ISBN: 1455211745
Category : Business & Economics
Languages : en
Pages : 23
Book Description
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.
The Historical Consumer
Author: Penelope FrancksPublisher: Springer
ISBN: 0230367348
Category : Business & Economics
Languages : en
Pages : 454
Book Description
This book explores the rise of consumerism and the expanding variety of goods available in Japan. Japan is placed within the comparative context of the 'consumer revolution' in Europe and North America, contributing to the analysis of the ways in which consumption and everyday life change in the course of economic development.
Estimation of Precautionary Savings in the U.S. and Japan
Author: Isamu GinamaPublisher:
ISBN:
Category : Saving and investment
Languages : en
Pages : 272
Book Description
Discussion Paper
Author: Understanding Consumption
Author: Angus DeatonPublisher: Clarendon Press
ISBN: 0191521639
Category : Business & Economics
Languages : en
Pages : 256
Book Description
This book provides an overview of the recent research on saving and consumption, a field in which substantial progress has been made over the last decade. Attempts by economists to understand saving and consumption patterns have generated some of the best science in economics. For more than fifty years, there has been serious empirical and theoretical activity, and data, theory, and policy have never been separated as has happened in many branches of economics. Research has drawn microeconomists interested in household behaviour, as well as macroeconomists, for whom the behaviour of aggregate consumption has always occupied a central role in explaining aggregate fluctuations. Econometricians have also made distinguished contributions, and there has been a steady flow of new methodologies by those working on saving and consumption, in time-series econometrics, as well as in the study of micro and panel data. A coherent account of these developments is presented here, emphasizing the interplay between micro and the macro, between studies of cross-section and panels, and those using aggregate time series data.
The Economics of Consumption
Author: Tullio JappelliPublisher: Oxford University Press
ISBN: 0199383154
Category : Business & Economics
Languages : en
Pages : 313
Book Description
In The Economics of Consumption, Tullio Jappelli and Luigi Pistaferri provide a comprehensive examination of the most important developments in the field of consumption decisions and evaluate economic models against empirical evidence.
Author: