ESRI Discussion Paper Series No.346 Dissaving by the elderly in Japan: Empirical evidence from survey data
Abstract
Using two micro datasets of household surveys, this study empirically examines the (dis)saving behavior of the elderly in Japan. Using the long-run dataset covering 20 years, the findings indicate that, on average, the elderly in Japan dissave, but the pace of dissaving of retired elderly appears to be excessively slow in light of the standard life cycle-permanent income hypothesis. The analysis suggests that one likely factor is the desire to leave a bequest. Both the saving rate and the pace of wealth decumulation show that retired households dissave more slowly if the head plans to leave a bequest. Retired elderly who intend to have savings for precautionary purposes are not found to dissave more slowly except for those who do not plan to leave a bequest to their children.
Structure of the whole text(PDF-Format 1 File)
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page1Abstract
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page21. Introduction
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page42. Data description
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page52.1 Family Income and Expenditure Survey (FIES)
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page62.2 Japanese Study of Aging and Retirement (JSTAR)
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page73. Descriptive analysis based on the FIES
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page83.1 Age consumption/income profiles
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page83.2.Age-wealth profiles
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page93.3 Do the elderly consume too little and save too much during retirement?
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page104. Determinants of dissaving by elderly households
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page104.1 Empirical methodology
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page124.2 Regression results
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page134.3 Discussion
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page155. Concluding remarks and remaining issues
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page17References:
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page19Tables
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page19Table 1. Sample statistics
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page20Table 2. Basic statistics for regression
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page20Table 3. Determinants of saving rate of elderly households
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page21Table 4. Determinants of saving rate for elderly households
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page21Table 5(a). Consumption level of retired elderly
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page21Table 5(b). Consumption level of retired elderly: By planning to leave a bequest and precautionary saving
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page22Table 6. Determinants of the ratio of expected life-time wealth to expenditures of retired elderly
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page23Figures
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page23Figure 1. Age profiles of the saving rate, income, and consumption
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page23Figure 2. Income and consumption of aged households by employment status
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page24Figure 3. Age-wealth profiles by cohort (Median values)
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page24Figure 4. Elderly households’ consumption level
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page25Appendix
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page25Appendix 1. JSTAR data and missing-data imputation
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page25Appendix 2. Regression results using other specifications
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page26Appendix Table 1. Determinants of the saving rate of elderly households
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page27Appendix Table 2. Determinants of the saving behavior of elderly households
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