The Causes of Japan's 'Lost Decade': The Role of Household Consumption

Charles Yuji Horioka ()

ISER Discussion Paper from Institute of Social and Economic Research, Osaka University

Abstract: In this paper, I analyze the causes of the prolonged slowdown of the Japanese economy in the 1990s and find that the stagnation of investment, especially private fixed investment, was the primary culprit. I then investigate the causes of the stagnation of household consumption during the 1990s and find that the stagnation of household disposable income, the decline in household wealth, and increased uncertainty about the future are among the contributing factors. Finally, I consider whether demand side factors or supply side factors were more important as causes of the prolonged slowdown of the Japanese economy in the 1990s and conclude that the former (especially misguided government policies) were probably more important.

Date: 2006-06
View citations in EconPapers

Downloads: (external link)
http://www.iser.osaka-u.ac.jp/library/dp/2006/DP0661.pdf

Related works:
Working Paper: The Causes of Japan's "Lost Decade": The Role of Household Consumption (2006)
Journal Article: The causes of Japan's `lost decade': The role of household consumption (2006)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:dpr:wpaper:0661

Access Statistics for this paper

More papers in ISER Discussion Paper from Institute of Social and Economic Research, Osaka University
Contact information at EDIRC.
Series data maintained by Fumiko Matsumoto ().