WHY IS JAPAN HOUSEHOLD SAVING RATE SO HIGH - A LITERATURE SURVEY

This article surveys the literature on household saving in Japan and reviews the evidence concerning the various factors that have been suggested as possible causes of Japan's high and rising household saving rate. Conceptual differences and deficiencies, the age structure of the population (especially the low proportion of the aged), the bonus system, and the rapid rate of income growth are found to be among the most important factors. Another finding is that Japan's household saving rate is likely to continue its recent decline as many of the factors that helped raise it in the past become less applicable.J. Japan. Int. Econ., March 1990, 4(1), pp. 49-92. Institute of Social and Economic Research, Osaka University, 6-1 Mihogaoka, Ibaraki, Osaka 567, Japan, and National Bureau of Economic Research. © 1990.