2014 Fiscal Year Final Research Report
Dynamic General Equilibrium Analysis on the "Lost Generation" in Japan
| Project/Area Number |
24730173
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| Research Category |
Grant-in-Aid for Young Scientists (B)
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| Allocation Type | Multi-year Fund |
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| Research Field |
Economic theory
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| Research Institution | Meiji University |
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Principal Investigator |
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| Project Period (FY) |
2012-04-01 – 2015-03-31
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| Keywords | 動学的一般均衡理論 / 経済格差 / 再分配政策 / 少子高齢化 / ライフサイクル |
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| Outline of Final Research Achievements |
Changes in macroeconomic environment such as declining economic growth may have several effects among different cohorts. For example, recent labor market reforms after severe recessions have significant impacts on youth employees. The purpose of this research project is to examine how such changes in macroeconomic environment could affect inter-generational and intra-generational allocations of wealth using life cycle models with heterogeneous households. Using the model as laboratory tools, I mainly show the following things: (1) Based on the dynamic general equilibrium model with heterogeneous households, declines in economic growth rate after the bubble burst in Japan do not rise in economic inequality. (2) We also show that it is inevitable to raise consumption tax rate without any social security reforms to sustain the government budget. One possibility to resolve the problem is encouraging youth, in particular female, labor force participation.
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| Free Research Field |
動学的一般均衡理論
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