Does the Life Cycle Hypothesis Apply in the Case of Japan?

ニホン　デ　ライフ　サイクル　カセツ　ハ　ナリタッテイルカ

Horioka, Charles Yuji

貯蓄

貯蓄目的

消費

家計

家計貯蓄

人口の年齢構成

退職者

老後

世代間移転

遺産

遺産動機

相続

利他主義

利己主義

借り入れ制約

流動性制約

Age structure of the population

altruism

bequests

bequest motives

borrowing constraints

consumption

elderly

households

household saving

inheritances

intergenerational transfers

life cycle hypothesis

life cycle model

liquidity constraints

old age

retirees

saving

saving motives

selfishness

In this paper, we first discuss the simplest version of the life cycle model, which is arguably the most widely used theoretical model in economics, and then consider whether or not the life cycle model applies in the case of Japan using a variety of methodologies and data and placing emphasis on the author’s own research. In particular, we survey the literature on the impact of the age structure of the population on the saving rate, on the saving behavior of retired households, on saving motives, on the importance of bequests, on bequest motives, on the prevalence of altruism, and on the importance of borrowing (liquidity) constraints and show that almost all previous research suggests that the life cycle model is more applicable in Japan than it is in other countries. Thus, the answer to the question posed in the title of this paper is an unqualified “yes.” Finally, we discuss the policy implications of our finding that the life cycle model applies in the case of Japan.