Is there a retirement consumption puzzle in Japan? Evidence based on panel data on households in the agricultural sector

Masahiro Hori and Keiko Murata

No 616, CIS Discussion paper series from Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University

Abstract: Taking advantage of annual panel data on part-time farmer households, this paper investigates whether a retirement consumption puzzle is observed in Japan. Our analysis shows that households’ expenditure does decline after the retirement of the household head and that changes in family size and in life-style/preferences cannot fully explain this decline. Unanticipated negative income shocks such as health problems appear to provide a partial explanation. However, our analysis also suggests that there are myopic households that lacked the discipline to accumulate sufficient savings for retirement.

Keywords: Retirement; Household consumption; Life cycle/Permanent income hypothesis (search for similar items in EconPapers)
JEL-codes: D12 E21 J26 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2014-02
New Economics Papers: this item is included in nep-age and nep-mac
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Citations: View citations in EconPapers (2)

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https://hermes-ir.lib.hit-u.ac.jp/hermes/ir/re/26434/cis_dp616.pdf

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Working Paper: Is there a retirement consumption puzzle in Japan? Evidence based on panel data on households in the agricultural sector (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:hit:cisdps:616

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