Is Japan's saving rate high?
Quarterly Review, 1989, vol. 13, issue Spr, 3-9
There are two major differences between Japan and the United States in the way saving is calculated in their national accounts. First, depreciation in Japanese national accounts is based on historical costs, which leads to an understatement of true depreciation and hence an overstatement of net saving. Second, government capital formation is not included in U.S. saving. This article adjusts the official Japanese saving numbers by evaluating depreciation at replacement costs and excluding government capital formation from saving. Doing so significantly reduces the apparent gap between the national saving rates of the two countries. Since 1970 Japan's national saving rate has been declining to the stationary U.S. rate. This trend, however, has been reversed in recent years. In contrast, Japan's wealth-to-income ratio (excluding land), after declining in the late 1950s, has been rising toward the U.S. ratio and has reached the U.S. level in 1987.
Keywords: Saving and investment; Japan (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (27) Track citations by RSS feed
Downloads: (external link)
Our link check indicates that this URL is bad, the error code is: 403 Forbidden (http://minneapolisfed.org/research/qr/qr1321.pdf [301 Moved Permanently]--> https://www.minneapolisfed.org/research/qr/qr1321.pdf)
Our link check indicates that this URL is bad, the error code is: 403 Forbidden (http://minneapolisfed.org/research/qr/qr1321.html [301 Moved Permanently]--> https://www.minneapolisfed.org/research/qr/qr1321.html)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:fip:fedmqr:y:1989:i:spr:p:3-9:n:v.13no.2
Access Statistics for this article
More articles in Quarterly Review from Federal Reserve Bank of Minneapolis Contact information at EDIRC.
Bibliographic data for series maintained by ( this e-mail address is bad, please contact ).