Japanese Households Research Articles

Do Borrowing Constraints Matter? An Analysis of Why the Permanent Income Hypothesis Does Not Apply in Japan

We use micro data on young married households from the Japanese Panel Survey of Consumers in order to analyze the importance of borrowing constraints in Japan. We find (1) that 8 to 15 percent of young married Japanese households are borrowing-constrained, (2) that household assets and the husband%u2019s educational attainment are the most important determinants of whether or not a household is borrowing-constrained, and (3) that the Euler equation implication is rejected for both the full sample and for the subsample of unconstrained households. These results suggest that the life cycle/permanent income hypothesis does not apply in Japan and that the presence of borrowing constraints is not the main reason why it does not apply.

Proposal of a simple indicator for sustainable consumption: classifying goods and services into three types focusing on their optimal consumption levels

We calculated optimal consumption patterns of Japanese households using a linear programming model, taking into account the different environmental burdens to be minimized. Ninety-four industrial sectors and 94 commodities were defined in the model. In terms of environmental burdens to be minimized, this study considered energy consumption, CO 2 emission, waste, and NO x emission. According to the direction (increase or decrease) of adjusted final demand for a commodity in the household, commodities were classified into three types: (1) a commodity for which optimal demand should be decreased in all cases of reducing various environmental burdens; (2) a commodity whose optimal demand should be increased in all cases; and (3) a commodity whose optimal demand depends on the type of environmental burden. Among 63 commodities whose final demand was assumed to be adjustable, 47 were categorized as commodity type 1, nine were categorized as commodity type 2, and seven belonged to commodity type 3. This work also characterized each type of commodity from the viewpoint of economic and environmental properties.

調理時におけるライフサイクルCO2排出量の実践的定量

The study examined the volume of Life Cycle CO2 emission from Japanese, Western and Chinese dishes that are daily consumed by the Japanese, especially it compared the volume of CO2 emission depending upon a different cooking process. The results of the analysis revealed as follows. 1. CO2 emission is greatly influenced by the purchase of in-season product and the use of food ingredients produced in nearby prefecture. 2. It is clear that the size of cooking pot, adjustment of cooking temperature, whether or not to use a pot cover while cooking could affect on the reduction of CO2 emission. It is necessary to devise suitable cooking process for CO2 emission reduction because CO2 emission could be increased depending on certain cooking process such as boiled or steamed. The volume of CO2 discharged from cooking by one household is limited; however it becomes larger when taking the total number of Japanese households into account. (49,530,000 according to 2005 census) It is evident that every household should concern on CO2 emission from cooking since it could reduce the environmental burdens.

Valuing food-borne risks using time-series data: The case ofE. coli O157:H7 and BSE crises in Japan

This study evaluates changes in consumers' concerns on food safety after the outbreaks of E. coli O157 and bovine spongiform encephalopathy (BSE) in Japan using household consumption time-series data. A food demand system for Japanese households is estimated using the linear approximate almost-ideal demand system (AIDS) model to evaluate the willingness to accept (WTA) compensation for risk. The Kalman filtering method is applied to produce estimates without a priori assumption regarding timing of the changes. The WTA value rises immediately after a food safety crisis occurs and declines in a short time. However, it does not return to previous levels for an extended period. A possible explanation for remaining effects of a crisis might be that they are the results of habit formation and learning effects of consumption. [EconLit citations: D12, D18, Q13]. © 2006 Wiley Periodicals, Inc. Agribusiness 22: 219–232, 2006.

Price expectations and consumption under deflation: evidence from Japanese household survey data

The Japanese economy has experienced price deflation since the mid-1990s. Despite the importance of overcoming deflation, there has been little recent research on price expectations in Japan. This paper takes advantage of an original and rich quarterly household-level data set from the “Kokumin Seikatsu Monitors” to estimate average price expectations, examine the factors that affect price expectations, and examine how changes in price expectations have affected household consumption. Our estimates indicate that average price expectations ranged from minus 0.2 to 0% in 2001 and 2002. However, there was an increase to 1% in the first quarter of 2003, followed by a decline to 0.2% in the second quarter, and a steady increase toward 0.8% by the first quarter of 2004. Price expectations depend on current price movements and lagged expectations. A series of quantitative easing monetary policies were not very effective in changing the price expectations, since the policy announcements caused revision of price expectations only for a small portion, i.e., 5–10% of people surveyed. The jump observed in the first quarter of 2003 was a reaction to the outbreak of the Iraq war. Our study also confirms that deflationary expectations discourage household consumption, mainly durable consumption, by delaying the timing of purchases, suggesting that the deflationary expectations should be upwardly revised to restore a vital Japanese economy.

Multiple Choices: Rural Household Diversification and Japan's Path to Industrialization

Much of the historical literature on the forms of industrialization has assumed that agriculture and industry must develop along separate and specialized lines, linked only at the macro level through inter-sectoral resource transfers. This paper uses the Japanese historical case, combined with the recognition, in much work on contemporary developing and developed countries, of the significance of diversification as a rural household strategy, to argue that a pattern of industrialization based on micro-level complementarity between agricultural and non-agricultural activities is possible. After summarizing the changing characteristics of the diversification pursued by Japanese rural households since the nineteenth century, the paper seeks to demonstrate that technical and organizational change in agriculture and rural industry can be seen as conditioning each other to produce the inter-connected structure of flexible manufacturing and small-scale, ‘part-time’ farming on which the significant role of the rural sector in Japan's economic growth has been based.

05/02135 Relationship between possession of electric appliances and electricity for lighting and others in Japanese households

05/02135 Relationship between possession of electric appliances and electricity for lighting and others in Japanese households

ANNUITIZED ASSET ADEQUACY IN JAPAN: THE DEMAND FOR INDIVIDUAL PENSIONS

In this paper, I analyze the impact of social security wealth, retirement payments, and living expenses during retirement on people’s retirement savings in general, and on their individual pension holdings in particular, using micro data from a 1996 Japanese household survey. I confirm a replacement effect of social security on saving for all types of households and on individual pensions for self-employed households only. This suggests that the social security assets of self-employed households are less than their optimal level of annuitized assets and that they would increase their demand for individual pensions if social security benefits were to be reduced.

Did Japanese consumers become more prudent during 1998–1999? Evidence from household-level data

This paper explores empirically whether Japanese consumers became more prudent in the second half of the 1990s, a decade in which Japan registered historically low economic growth. Employing the methodology developed by Dynan (1993), this study uses micro-level data from the Family Savings Survey and the Family Income and Expenditure Survey to estimate the coefficient of prudence for Japanese households in the second half of the 1990s. The estimates reveal that the coefficient of prudence is positive and statistically significant in the 1998–1999 period. The obtained value for the coefficient of prudence is four, which is much higher than that estimated for US households (not significantly different from zero) or UK households (around 2). The estimated coefficient for young households is higher still, which is consistent with simulation studies conducted by Gourinchas & Parker (2002) showing that precaution is the most important saving motive for younger households.

Income Uncertainty and Self-Reported Precautionary Wealth: Evidence from the Japanese Micro Data

Using unique survey data which includes information on precautionary wealth and its target, we analyze the precautionary saving behavior of Japanese households. Our findings are: 1. Measures for income uncertainty have a positive influence on the target for precautionary wealth but not on precautionary wealth. 2. The positive influence of income uncertainty on the target vanishes when older households with a head aged 51 or older are included in the sample. These findings suggest that Japanese households save against income uncertainty until around when their head is aged 50 and then save against other risks such as the longevity risk.

AFLAC Inc.

Mergent's Dividend AchieversVolume 2, Issue 2 p. 3-3 U.S. Company Report AFLAC Inc.† First published: 22 April 2005 https://doi.org/10.1002/div.2174 † Contact: : Daniel P. Amos — Chmn., C.E.O. Address: : 1932 Wynnton Road, Columbus, GA 31999 Web Site: : www.aflac.com AboutPDF ToolsRequest permissionExport citationAdd to favoritesTrack citation ShareShare Give accessShare full text accessShare full-text accessPlease review our Terms and Conditions of Use and check box below to share full-text version of article.I have read and accept the Wiley Online Library Terms and Conditions of UseShareable LinkUse the link below to share a full-text version of this article with your friends and colleagues. Learn more.Copy URL Share a linkShare onFacebookTwitterLinked InRedditWechat Abstract Insurance (MIC: 8.2 SIC: 321 NAIC: 24114) AFLAC is an international insurance organization whose principal subsidiary is American Family Life Assurance Company of Columbus. In addition to life, and health & accident insurance, Co. has pioneered cancer-expense and intensive-care insurance coverage. Co.'s subsidiary Communicorp specializes in printing, advertising, audio-visuals, sales incentives, business meetings and mailings. As of Feb 2 2004, Co. insured more than 40.0 million people worldwide, and offered policies to employees through 288,100 payroll accounts. Also, Co. insures one out of four Japanese households and is the largest life insurer in Japan in terms of individual policies in force. Volume2, Issue2Spring 2005Pages 3-3 RelatedInformation

Relationship between possession of electric appliances and electricity for lighting and others in Japanese households

A questionnaire survey on the possession of electric appliances and on its influence upon the energy consumption in Japanese households was conducted in 1996. It was found that the increase in the consumption of residential electricity was due to the use of higher number of electric appliances. This reflects the higher economic status of the householders and their lifestyle. The relationship between electric consumption for lighting and others and the influencing factor is evaluated by using the multivariate analysis. The results of this study are expected to provide fundamental information in order to enhance residents’ awareness on the importance of energy conservation. It is also expected that the results will be helpful for Asian developing countries.

Changes in Japanese household consumption and saving behavior before, during and after the Bubble era: empirical analysis using NSFIE micro-data sets

This paper seeks to clarify changes in the Japanese household behavior in the 1980s and 1990s through empirical investigation of available data on consumption and saving using the micro-data sets of the National Survey of Family Income and Expenditure. Our findings are as follows: First, household consumption was stable even during the Bubble period. Second, “bubbly” consumption in the Bubble era was due to consumption relying on corporate expense accounts. And, third, the saving behavior of households changed significantly after the Bubble burst and asset prices imploded. This is indicated by the change in the coefficient of assets in the saving function.

AFLAC Inc.

AbstractInsurance (MIC: 8.2 SIC: 6321 NAIC:524114)AFLAC is an international insurance organization whose principal subsidiary is American Family Life Assurance Company of Columbus. In addition to life, and health & accident insurance, Co. has pioneered cancer‐expense and intensive‐care insurance coverage. Co.'s subsidiary Communicorp specializes in printing, advertising, audio‐visuals, sales incentives, business meetings and mailings. As of Feb 2 2004, Co. insured more than 40.0 million people worldwide, and offered policies to employees through 288,100 payroll accounts. Also, Co. insures one out of four Japanese households and is the second largest life insurer in Japan in terms of individual policies in force.

Willingness to pay for green electricity in Japan as estimated through contingent valuation method

Renewable energy systems, such as photovoltaic and wind-turbine energy systems, are considered to be environmentally sound from the viewpoint of carbon-dioxide emissions and resource depletion. The cost of energy supplied from renewable energy systems is higher than that of conventional fossil-fuel systems, and this hinders the wider spread of renewable-energy systems. Global environmental problems, however, are becoming more obvious. There is a movement to defray the additional cost of electricity generated in environmentally-sound processes. In this paper, we report the results of a survey using the contingent valuation method (CVM) of the willingness of Japanese households to pay more, in the form of a flat monthly surcharge, for renewable energy. The median value of willingness to pay for renewable energy by Japanese households is estimated at about 2000 yen (around 17 US$ with the exchange rate 115 yen/US$) per month per household.

Distribution-free statistical inference for generalized Lorenz dominance based on grouped data

One income distribution is preferable to another under any increasing and Schur-concave (S-concave) social welfare function (SWF) if and only if the generalized Lorenz (GL) curve of the first distribution lies above that of the second. Thus, testing for GL dominance of one distribution over another is of interest. The paper focuses on inference based on grouped data and makes two contributions: (i) it gives a new formula for the asymptotic variance–covariance matrix of a vector of sample GL curve ordinates, interpreting it as a method-of-moments (MM) estimator, and (ii) it proposes a new test for multivariate inequality restrictions, of which GL dominance is a special case. For the Japanese household income data grouped into deciles, the test accepts the null hypothesis that income distribution in Japan improved from 1979 to 1994.

Targeted saving by renters for housing purchase in Japan

This paper examines the extent to which wealth accumulation for housing purchase increases household savings and suppresses consumption. The study employs an estimation method based on simultaneous equations with limited dependent variables developed by Nelson and Olson to examine the relationship between wealth accumulation and housing purchase plans, using data relating to young Japanese renters. The estimation results provide evidence that young Japanese households severely reduce their consumption by around 30–40 percent.

Social Constraints and Language Learning: Filipina immigrants in Japan

During the past two decades, a significant number of Filipinas have immigrated to Japan and married into rural Japanese households. For economic security, these women are willing to make enormous sacrifices to learn a new language and the complex cultural mores of traditional Japanese society. Using questionnaires, personal interviews, field observations and village documents, the influence of social context on the second language acquisition (SLA) efforts of seven Filipina wives currently living in a small village was analyzed to determine how social and cultural contexts affected their acculturation success and efforts to learn a second language. The data do not support the use of Schumann's (1986) Acculturation Model to explain the SLA failure or success of this small, easily accessible immigrant population in an all-Asian setting. Instead, SLA success seems to be more dependent on cultural context, and it is that context that must be addressed in any discussion of socio-linguistic acculturation into a host society. It is important to remember that, unlike the USA, Japan accepts a very small number of legal immigrants per year, and formal language instruction in support of legal immigration is essentially non-existent.

Hygiene measures considering actual distributions of microorganisms in Japanese households.

Effective household hygiene measures require that sources of bacterial contamination and the places to which contamination spreads be carefully identified. Therefore, a study was performed to examine the distribution of microorganisms throughout ordinary households in Japan, which has its own unique customs of daily life and food preparation. Using the stamping method, samples were taken from 100 different places and items in each of 86 households. This study found kitchens/dining rooms to have the greatest level of microbial contamination and bathrooms, the next highest level. Toilets (water closets) were found to have an unexpectedly low level of bacterial contamination. The largest bacterial counts were found on items such as drain traps, dish-washing sponges, counter towels, sinks, dish-washing tubs, and bathroom sponges. It is necessary to carefully identify both the items that can become instruments for spreading bacterial contamination and the places that easily become subject to secondary contamination, and then to take timely and effective disinfection/sanitizing measures. The data gathered in this study will be very valuable for anticipating the pathways over which bacteria are transported and prioritizing disinfection targets, to make effective disinfection possible.

Missing Household Saving and Valuation of Corporations: Inquiry into Japanese National Accounts I

The Japanese household sector has suffered a capital loss of some 400 trillion yen (in 1990 consumption prices) since 1970. This is a large enough loss to explain the Japanese recession of the 1990s. We can trace some three fourths of this capital loss to the loss in the market value of Japanese corporations relative to their accounting value (at reproduction cost). The behavior of the corporate sector leading to this loss is obscured because, in the Japanese National Accounts, the corporate sector contains both private and public enterprises, and information presented for this sector is seriously incomplete. Nevertheless, data suggest that corporations have attempted to maximize their productive capacity rather than their market value and overinvested in plant and equipment since at least 1970. An unusual corporate governance structure in Japan may have permitted and even induced corporate management to follow such a strategy. The paper concludes with a set of recommendations to improve the presentation of these issues in the National Accounts. J. Japan. Int. Econ., June 2002, 16(2) pp. 147–176. University of Pennsylvania, Philadelphia, Pennsylvania 19104 and NBER. © 2002 Elsevier Science (USA).Journal of Economic Literature Classification Numbers: C82, E21, E22, G30.