Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/127109
Authors: 
Ono, Yoshiyasu
Year of Publication: 
2015
Series/Report no.: 
ISER Discussion Paper, Institute of Social and Economic Research, Osaka University 946
Abstract: 
In 1960s - 1980s Japan enjoyed high economic growth. In the early 1990s, however, the growth rate drastically declined and thereafter Japan has been suffering secular stagnation. This paper proposes a dynamic macroeconomic model that can consistently explain such a drastic change in economic performance. Wealth preference plays an important role. In the early stage consumption grows at the same pace as productivity increases. Once consumption reaches a certain level, however, it deviates from the full-employment level and aggregate demand deficiency appears. After that the economic growth rate asymptotically approaches zero even if productivity keeps on increasing, and secular stagnation arises.
Subjects: 
long-run stagnation
aggregate demand deficiency
wealth preference
fair wages
economic growth
Japan
JEL: 
E32
E13
Document Type: 
Working Paper

Files in This Item:
File
Size
212.82 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.