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Population Aging, Government Policy and the Postwar Japanese Economy

Otsu, Keisuke, Shibayama, Katsuyuki (2022) Population Aging, Government Policy and the Postwar Japanese Economy. Otsu, K. and Shibayama, K., 2022. Population Aging, Government Policy and the Postwar Japanese Economy. Journal of the Japanese and International Economies, p.101191., 64 . p. 101191. ISSN 0889-1583. (doi:10.1016/j.jjie.2022.101191) (KAR id:70669)

PDF (accepted by Journal of the Japanese and International Economies (Jun 2022)) Author's Accepted Manuscript
Language: English

DOI for this version: 10.1016/j.jjie.2022.101191

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Official URL:
https://doi.org/10.1016/j.jjie.2022.101191

Abstract

This paper analyzes the Postwar Japanese economy with a parsimonious neoclassical growth model that incorporates the demographic transition in Japan. We find that i) the increase in the aged population share can account for most of the decline in employment and reduced output by 8%, ii) workweek shortening policy led to a 20% reduction in output from its potential level by reducing hours worked over the 1988-1994 period, iii) the rise in labor tax led to an 11% reduction in output from its potential level by discouraging hours worked, iv) the shift in the composition of government spending may have caused a slowdown in productivity growth and hence a reduction in the potential output level itself.

Item Type: Article
DOI/Identification number: 10.1016/j.jjie.2022.101191
Uncontrolled keywords: Population agingWorkweek shorteningProductivity growthNeoclassical growth model
Subjects: H Social Sciences > HB Economic Theory
Divisions: Divisions > Division of Human and Social Sciences > School of Economics
Depositing User: Katsuyuki Shibayama
Date Deposited: 06 Dec 2018 18:40 UTC
Last Modified: 19 May 2022 10:25 UTC
Resource URI: https://kar.kent.ac.uk/id/eprint/70669 (The current URI for this page, for reference purposes)

University of Kent Author Information

Shibayama, Katsuyuki.

Creator's ORCID: https://orcid.org/0000-0003-3472-398X
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