Interest Income and Household Savings: Evidence Based on the Maturation of Postal Savings Certificates

Noriko Inakura and Satoshi Shimizutani

Hi-Stat Discussion Paper Series from Institute of Economic Research, Hitotsubashi University

Abstract: Japan's traditionally high household saving rate has declined substantially since the early 1990s. While this decline is often explained as a result of the rapid increase in the population share of the elderly who are dissaving, we argue that the cause is a decline in interest income triggered by falling interest rates. To examine our hypothesis, we focus on the effect of the maturation of relatively high-yielding postal savings certificates. Estimating a savings function, we find that the reduction in interest income caused by the maturation of the postal saving certificates reduced household saving rates by 3 percentage points.

Keywords: interest rate income; household saving rate; postal saving certificate (search for similar items in EconPapers)
JEL-codes: D12 E21 G29 (search for similar items in EconPapers)
Date: 2006-05
New Economics Papers: this item is included in nep-fin, nep-fmk, nep-mac and nep-sea
References: Add references at CitEc
Citations:

Downloads: (external link)
https://hit-u.repo.nii.ac.jp/record/2050412/files/D06-165.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 403 Forbidden (https://hit-u.repo.nii.ac.jp/record/2050412/files/D06-165.pdf [302 FOUND]--> https://nrjjxl1nnwb4.compat.objectstorage.ap-tokyo-1.oraclecloud.com/contents/hit_u_repo_nii_ac_jp/55/1c/d0f9-3109-4995-9660-9a594d7b1e11/data?response-content-type=application%2Foctet-stream&response-content-disposition=attachment%3B%20filename%3DD06-165.pdf&X-Amz-Algorithm=AWS4-HMAC-SHA256&X-Amz-Credential=2933d73c5ea35b566afd770d1a6af5c853196a77%2F20260814%2Fap-tokyo-1%2Fs3%2Faws4_request&X-Amz-Date=20260814T085801Z&X-Amz-Expires=60&X-Amz-SignedHeaders=host&X-Amz-Signature=59b0edc97c4133884f66156b4a46cf0fd020a09b4932243eb8d44bd781980a4e)

Related works:
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: https://EconPapers.repec.org/RePEc:hst:hstdps:d06-165

Access Statistics for this paper

More papers in Hi-Stat Discussion Paper Series from Institute of Economic Research, Hitotsubashi University Contact information at EDIRC.
Bibliographic data for series maintained by Tatsuji Makino ().