Household Consumption in Japan – Role of Income and Asset Developments

Erkki Vihriälä

No 2017/023, IMF Working Papers from International Monetary Fund

Abstract: We study Japanese household consumption at a disaggregated level focusing on the role of income and asset dynamics. Stagnation of real per capita consumption is widespread acrosslabor market groups, age groups and regions. Consumption-to-income ratios have been mildly increasing due to the rising share of pensioners with significant assets. Evidence therefore suggests that assets have become more important in financing consumption. However, the short-term consumption dynamics remain quite sensitive to income growth but not to asset market movements.

Keywords: WP; consumption growth; asset variable; consumption dynamics; income concept; flexibility; labor earnings growth; inflation; consumption volume; consumption plan; Consumption; Income; Disposable income; Real interest rates; Household consumption; Global (search for similar items in EconPapers)
Pages: 33
Date: 2017-01-31
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Citations: View citations in EconPapers (2)

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