The implications of a graying Japan for government policy

R. Braun and Douglas H. Joines

Journal of Economic Dynamics and Control, 2015, vol. 57, issue C, 1-23

Abstract: Japan is in the midst of a demographic transition that is both rapid and large by international standards. As recently as 1990 Japan had the youngest population among the Group of 6 large, developed countries. However, the combined effects of aging of the baby-boomer generation and low fertility rates have produced very rapid aging. Japan now finds itself with the oldest population among the Group of 6 and its population will continue to age at a rapid pace in future years. Aging is already placing a burden on government finances and Japan׳s ability to confront the negative fiscal implications of future aging is constrained by its very high debt–GDP ratio. We find that Japan faces a severe fiscal crisis if remedial action is not undertaken soon and analyze alternative strategies for correcting Japan׳s fiscal imbalances.

Keywords: Fiscal policy; Demographics; Aging; Japan (search for similar items in EconPapers)
JEL-codes: E62 H51 H55 H63 (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (63)

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Working Paper: The Implications of a graying japan for government policy (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:dyncon:v:57:y:2015:i:c:p:1-23

DOI: 10.1016/j.jedc.2015.05.005

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