Economic Analysis of the Effect of Capital Taxation on Saving and Income Distribution
| Project/Area Number |
61450080
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| Research Category |
Grant-in-Aid for General Scientific Research (B)
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| Allocation Type | Single-year Grants |
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| Research Field |
Public finance/Monetary economics
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| Research Institution | Faculty of Economics, University of Tokyo |
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Principal Investigator |
ISHIKAWA Tsuneo Faculty of Economics, University of Tokyo, 経済学部, 助教授 (90107483)
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| Co-Investigator(Kenkyū-buntansha) |
KAIZUKA Keimei Faculty of Economics, University of Tokyo, 経済学部, 教授 (10028037)
MIYAJIMA Hiroshi Faculty of Economics, University of Tokyo, 経済学部, 教授 (00020537)
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| Project Period (FY) |
1986 – 1987
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| Project Status |
Completed (Fiscal Year 1987)
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| Budget Amount *help |
¥2,800,000 (Direct Cost: ¥2,800,000)
Fiscal Year 1987: ¥800,000 (Direct Cost: ¥800,000)
Fiscal Year 1986: ¥2,000,000 (Direct Cost: ¥2,000,000)
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| Keywords | JAPANESE HOUSEHOLD SAVING / CAPITAL TAXATION / AGED HOUSEHOLD / 貯蓄と労働供給 / 家計貯蓄 / 資産税制 / 金融税制 / 高齢化社会 / 日本 / 所得分配 |
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| Research Abstract |
In this study, we have employed household micro data in analyzing the household saving behayior and the state of income distribution, and the interaction between the two, and further evaluate the effect of capital taxation on saving. As the data source, we used the individual micro data of Family Saving Survey (years 1977-84) with the permission of the Bureau of Statistics (Prime Minister's Office). Total sample exceeded 16000. The principal findings of the study can be summarized as follows.
(1) One of the main reasons that appear to maintain the high saving rate of Japanese households despite the decline in the macro income growth rate is the recent rise of the wealth/income ratio that is aspired by households. The increase of the precautionary motive appears to lie an the background.
(2) We did not find the non-linear (increasing) income effect on saving; which appears to be consistent with the fact (so long as we believe the data reported) that inequality in finangial asset has not aggravated in the course of income growth. At the same time, we have detected many problems in the asset data reported by households.
(3) By imputing interest income (which is lacking in the original data reported), we have evaluated the potential impact of the Japanese capital taxation on the saving and income distribution of households. The effect appeared to be most for the aged households who hold high-return assets. For other aged households, the effect of taxation on saving, even if we assume that the interest elasticity of saving is fairly high, is at most minimal.
(4) We have inquired further the saving and labor participation behavior of the aged households. We sam that there exists as much as 13 % difference between the households who work and who do not work, and also due to the joint endogeneity of the saving and labor supply behavior detected from the data, the effect of exohenous shocks relating to pensions and taxation in labor participation on saving is nil.
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Report
(2 results)
Research Products
(8 results)
