Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/230489
Authors: 
Horioka, Charles
Year of Publication: 
2020
Series/Report no.: 
ISER Discussion Paper No. 1084
Abstract: 
In this paper, we first provide a brief exposition of the simplest version of the selfish life cycle model or hypothesis, which is undoubtedly the most widely used theoretical model of household behavior in economics, and then survey the literature on household saving behavior in Japan (with emphasis on the author's own past research) to shed light on whether or not the selfish life-cycle model applies in the case of Japan. In particular, we survey the literature on the impact of the age structure of the population on the saving rate, the saving behavior of retired households, saving motives, the prevalence of bequests, bequest motives, tests of altruism, and the importance of borrowing (liquidity) constraints and show that almost all of the available evidence suggests that the selfish life-cycle model applies to a greater extent in Japan than it does in other countries. Finally, we discuss the policy implications of our findings.
Subjects: 
Age structure of the population
aged
altruism
bequests
bequest motives
borrowing constraints
consumption
dissaving
elderly
estates
household behavior
household saving
households
inheritances
intergenerational transfers
Japan
lifecyclehypothesis
life-cycle model
life-cycle theory
liquidity constraints
old age
retirees
saving
saving motives
selfishness
JEL: 
D11
D12
D14
D15
D64
E21
J14
Document Type: 
Working Paper

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