Skip to main content Accessibility help
×
Hostname: page-component-7c8c6479df-7qhmt Total loading time: 0 Render date: 2024-03-29T05:09:49.835Z Has data issue: false hasContentIssue false

3 - The structural causes of Japan’s Lost Decades

Published online by Cambridge University Press:  07 January 2017

Dale W. Jorgenson
Affiliation:
Harvard University, Massachusetts
Kyoji Fukao
Affiliation:
Hitotsubashi University, Tokyo
Marcel P. Timmer
Affiliation:
Rijksuniversiteit Groningen, The Netherlands
Get access

Summary

Image of the first page of this content. For PDF version, please use the ‘Save PDF’ preceeding this image.'
Type
Chapter
Information
The World Economy
Growth or Stagnation?
, pp. 70 - 110
Publisher: Cambridge University Press
Print publication year: 2016

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Ando, Albert. 2002. “Missing Household Saving and Valuation of Corporations,” Journal of Japanese and International Economies, 16: 147176.Google Scholar
Arora, Ashish, Branstetter, Lee G., and Drev, Matej. 2011. “Going Soft: How the Rise of Software Based Innovation Led to the Decline of Japan’s IT Industry and the Resurgence of Silicon Valley,” Global COE Hi-Stat Discussion Paper Series, no. 199, Institute of Economic Research, Hitotsubashi University.Google Scholar
Atrostic, B. K., Motohashi, Kazuyuki, and Nguyen, Sang V.. 2008. “Computer Network Use and Firms’ Productivity Performance: The United States vs. Japan,” US Census Bureau Center for Economic Studies Paper, No. CES-WP-08-30.Google Scholar
Auerbach, Alan J. and Hassett, Kevin. 1989. “Corporate Savings and Shareholder Consumption,” NBER Working Paper Series, no. 2994, National Bureau of Economic Research, Cambridge, MA.Google Scholar
Auerbach, Alan J. and Kotlikoff, Laurence J.. 1989. “Demographics, Fiscal Policy, and US Saving in the 1980s and Beyond,” NBER Working Paper Series, no. 3150, National Bureau of Economic Research, Cambridge, MA.Google Scholar
Basu, Susanto, Fernald, John G., Oulton, Nicholas, and Srinivasan, Sylaja. 2003. “The Case of the Missing Productivity Growth: Or, Does Information Technology Explain why Productivity Accelerated in the United States but not in the United Kingdom?NBER Macroeconomics Annual, 18: 982.CrossRefGoogle Scholar
Bayoumi, Tamim. 2001. “The Morning After: Explaining the Slowdown in Japanese Growth in the 1990s,” Journal of International Economics, 53(2): 241259.CrossRefGoogle Scholar
Benes, Nicholas. 2015. “Corporate Governance Reform in Japan,” Ethical Boardroom. See: http://ethicalboardroom.com/leadership/corporate-governance-reform-in-japan, April 15.Google Scholar
Bloom, Nicholas, Sadun, Raffaella, and Van Reenen, John. 2012. “Americans do IT Better: US Multinationals and the Productivity Miracle,” American Economic Review, 102(1): 167201.CrossRefGoogle Scholar
Cabinet Office. 2009. Annual Report on the Japanese Economy and Public Finance 2009: Overcoming Financial Crisis and Vision for Sustained Recovery. Tokyo: Government Cabinet Office.Google Scholar
Fukao, Kyoji. 2001. “Japan’s Excess Saving and the Outbreak of the ‘Bubble.’” In Muramatsu, Michio and Okuno, Masahiro (eds.), Heisei baburu no kenkyu (The Research on Bubble Economy in Heisei Era [author’s translation]). Tokyo: Toyo Keizai Shinposha (in Japanese).Google Scholar
Fukao, Kyoji. 2012. The Structural Causes of Japan’s “Two Lost Decades”: Forging a New Growth Strategy. Tokyo: Nikkei Publishing Inc. (in Japanese).Google Scholar
Fukao, Kyoji. 2013. “Explaining Japan’s Unproductive Two Decades,” Asian Economic Policy Review, 8: 193213.CrossRefGoogle Scholar
Fukao, Kyoji, Ikeuchi, Kenta, Kim, YoungGak, and Kwon, Hyeog Ug. 2015. “Why was Japan Left Behind in the ICT Revolution?RIETI Discussion Paper Series, No. 15-E-043, Research Institute of Economy, Trade and Industry.Google Scholar
Fukao, Kyoji, Kim, YoungGak, and Kwon, Hyeog Ug. 2012. “Intangible Investment in Japan,” PPT prepared for the OECD Workshop on Productivity, OECD Conference Centre, Paris, November 5–6, 2012.Google Scholar
Fukao, Kyoji and Kwon, Hyeog Ug. 2006. “Why Did Japan’s TFP Growth Slow Down in the Lost Decade? An Empirical Analysis Based on Firm-level Data of Manufacturing Firms,” Japanese Economic Review, 57(2): 195228.CrossRefGoogle Scholar
Fukao, Kyoji and Miyagawa, Tsutomu. 2010. “Service Sector Productivity in Japan: The Key to Future Economic Growth.” In Tcha, MoonJoong (ed.), The Service Sector Advancement: Issues and Implications for the Korean Economy. Sejong-si, Korea: KDI Publishing, ch. 2–2, pp. 92109.Google Scholar
Fukao, Kyoji, Miyagawa, Tsutomu, Mukai, Kentaro, Shinoda, Yukio, and Tonogi, Konomi. 2008. “Intangible Investment in Japan: New Estimates and Contribution to Economic Growth,” Global COE Hi-Stat Discussion Paper Series, gd08-015, Institute of Economic Research, Hitotsubashi University.Google Scholar
Fukao, Kyoji, Miyagawa, Tsutomu, Mukai, Kentaro, Shinoda, Yukio, and Tonogi, Konomi. 2009. “Intangible Investment in Japan: Measurement and Contribution to Economic Growth, The Review of Income and Wealth, 55(3): 717736.CrossRefGoogle Scholar
Gordon, Robert J. 2013. “Is US Economic Growth Over? Faltering Innovation Confronts the Six Headwinds,” NBER Working Paper, no. 18315, National Bureau of Economic Research, Cambridge, MA.Google Scholar
Hamada, Koichi and Horiuchi, Akiyoshi. 2004. “Wrap-up Comments: Why Did Japan Experience Long-Term Stagnation?” In Hamada, Koichi, Horiuchi, Akiyoshi and Economic and Social Research Institute, Cabinet Office (eds.), Debates on the Economic Crisis in Contemporary Japan. Tokyo: Nihon Keizai Shinbun (in Japanese).Google Scholar
Hamada, Koichi and Okada, Yasushi. 2009. “Monetary and International Factors behind Japan’s Lost Decade,” Journal of the Japanese and International Economies, 23: 200219.CrossRefGoogle Scholar
Haskel, Jonathan, Jarmin, Ron S., Motohashi, Kazuyuki, and Sadun, Raffaella. 2007. “Retail Market Structure and Dynamics: A Three Country Comparison of Japan, the UK and the US,” Harvard Business School Working Paper.Google Scholar
Hayashi, Fumio. 2006. “The Over-investment Hypothesis.” In Klein, Lawrence R. (ed.) Long-run Growth and Short-run Stabilization: Essays in Memory of Albert Ando. Cheltenham, UK: Edward Elgar.Google Scholar
Hayashi, Fumio, and Prescott, Edward C.. 2002. “The 1990s in Japan: A Lost Decade,” Review of Economic Dynamics, 5(1): 206235.CrossRefGoogle Scholar
Horie, Yasuhiro. 2002. “Economic Analysis of the ‘Credit Crunch’ in the Late 1990s,” Discussion Paper Series, no. 2002–1, Faculty of Economics, Kyushu University.Google Scholar
Horioka, Charles Yuji. 2008. “The Flow of Household Funds in Japan,” Public Policy Review, Policy Research Institute, Japan Ministry of Finance, 4(1): 3752.Google Scholar
Inklaar, Robert and Timmer, Marcel P.. 2008. “GGDC Productivity Level Database: International Comparison of Output, Inputs and Productivity at the Industry Level,” a paper prepared for the 30th General Conference of The International Association for Research in Income and Wealth, Portoroz, Slovenia, August 24–30, 2008, Groningen Growth and Development Centre, University of Groningen, The Netherlands.Google Scholar
Inui, Tomohiko and Kwon, HyeogUg. 2005. “Survey: Did the TFP Growth Rate in Japan Decline in the 1990s?Economic Analysis, 176:138167, Economy and Social Research Institute, Cabinet Office (in Japanese).Google Scholar
Tatsuya, Ishii. 2009. “Changes in Households’ Precautionary Saving Behavior from the Bubble Economy Period to the Deflation Period.” In Fukao, Kyoji (ed.), The Japanese Economy in the Bubble/Deflation Periods and Economic Policy. Vol. 1: Macro Economy and Industrial Structure. Keio University Press (in Japanese).Google Scholar
Ito, Takatoshi, Patrick, Hugh, and Weinstein, David E.. 2005. (eds.) Reviving Japan’s Economy: Problems and Prescriptions, Cambridge, MA: MIT Press.Google Scholar
Iwaisako, Tokuo and Okada, Keiko. 2009. “Overview of the Consumption and the Saving in the Japanese Economy from the 1980s.” In Fukao, Kyoji (ed.), The Japanese Economy in the Bubble/Deflation Period and Economic Policy. Vol. 1: Macro Economy and Industrial Structure. Keio University Press (in Japanese).Google Scholar
Jorgenson, Dale W., Kuroda, Masahiro and Nishimizu, Mieko. 1987. “Japan–US Industry-level Productivity Comparisons, 1969–1979,” Journal of the Japanese and International Economies, 1(1): 130.CrossRefGoogle Scholar
Jorgenson, Dale W. and Motohashi, Kazuyuki. 2003. “The Role of Information Technology in Economy: Comparison between Japan and the United States,” prepared for RIETI/KEIO Conference on Japanese Economy: Leading East Asia in the 21st Century? Keio University, May 30.Google Scholar
Jorgenson, Dale W., Nomura, Koji, and Samuels, Jon D.. 2015. “A Half Century of Trans-pacific Competition: Price Level Indices and Productivity Gaps for Japanese and US Industries, 1955–2012.” In Jorgenson, Dale W., Fukao, Kyoji, and Timmer, Marcel P. (eds.), Growth and Stagnation in the World Economy. Cambridge University Press.Google Scholar
Kaldor, Nicholas. 1957. “A Model of Economic Growth,” The Economic Journal, 67: 591624.CrossRefGoogle Scholar
Kamata, Koichiro. 2009. “Japan’s Equilibrium Real Interest Rate,” in Fukao, Kyoji (ed.), The Japanese Economy in the Bubble/Deflation Period and Economic Policy. Vol. 1: Macro Economy and Industrial Structure. Keio University Press (in Japanese).Google Scholar
Kawaguchi, Daiji, Kambayashi, Ryo, Kim, YoungGak, Kwon, HyeogUg, Shimizutani, Satoshi, Fukao, Kyoji, Makino, Tetsuji, and Yokoyama, Izumi. 2007. “Are Wage-tenure Profiles Steeper than Productivity-tenure Profiles? Evidence from Japanese Establishment Data from the Census of Manufacturers and the Basic Survey of Wage Structure,” Economic Review, 58(1): 6190 (in Japanese).Google Scholar
Koo, Richard C. 2003. Balance Sheet Recession: Japan’s Struggle with Uncharted Economics and its Global Implications. Singapore: John Wiley and Sons (Asia).Google Scholar
Krugman, Paul. 1998. “It’s BAAACK! Japan’s Slump and the Return of the Liquidity Trap,” Brookings Papers on Economic Activity, 2: 137205.CrossRefGoogle Scholar
Kuroda, Masahiro and Nomura, Koji. 1999. “Japan’s Growth Potential,” Keizai Kyoshitsu column, Nihon Keizai Shimbun, January 27 (in Japanese).Google Scholar
Kwon, HyeogUg and Kim, YoungGak. 2010. “Ownership Structure and TFP: Evidence from Japanese Firms,” RIETI Discussion Paper Series, no. 10-J-050, Research Institute of Economy, Trade and Industry.Google Scholar
Matsubayashi, Yoichi. 2009. “Substitutability of Savings by Sectors in Japan and the United Sates,” The Economic Analysis, 181:4677, Economy and Social Research Institute, Cabinet Office (in Japanese).Google Scholar
Meltzer, Allan H. 1999. “Comments: What More Can the Bank of Japan Do?Monetary and Economic Studies, 17(3): 189191.Google Scholar
Miyagawa, Tsutomu, Edamura, Kazuma, YoungGak, Kim, and Hosung, Jung (2014) “Management Practice and R&D Activity: Empirical Analysis Based on Japan-Korea Interview Surveys,” Bank of Japan Working Paper Series, No. 14-J-4, Bank of Japan (in Japanese).Google Scholar
Miyao, Ryuzo. 2006. “Causes of Fluctuations in the Japanese Economy: The Role of Productivity Shocks,” Bank of Japan Working Paper Series, No. 06-J-1, Bank of Japan (in Japanese).Google Scholar
Motohashi, Kazuyuki. 2010. “Empirical Analysis of IT and Productivity: Comparisons between Japan and the US,” RIETI Policy Discussion Paper Series, no. 10-P-008, Research Institute of Economy, Trade and Industry (in Japanese).Google Scholar
National Institute of Population and Social Security Research. 2012. “Population Projections for Japan (January 2012).” See: www.ipss.go.jp/site-ad/index_english/esuikei/gh2401e.asp, accessed April 28, 2014.Google Scholar
Obstfeld, Maurice and Rogoff, Kenneth S.. 1996. Foundations of International Macroeconomics. Cambridge, MA: The MIT Press.Google Scholar
Ogawa, Kazuo. 2003. Economic Analysis of the Great Recession: Investigation into the Long-term Stagnation of the Japanese Economy. Nihon Keizai Shinbun-sha (in Japanese).Google Scholar
Ogawa, Kazuo. 2009. “Balance Sheet Deterioration and the Real Economy: Empirical Analysis of the Japanese Economy sincethe 1990s.” In Ikeo, Kazuto (ed.), The Japanese Economy in the Bubble/Deflation Period and Economic Policy. Vol. 4: Non-performing Loans and the Financial Crisis. Keio University Press (in Japanese).Google Scholar
Ogawa, Kazuo. 2011. “Balance Sheet Deterioration and Credit Allocations: Japanese Evidence from the Short-Term Economic Survey of Enterprises,” Japan and the World Economy, 23(2): 8696.CrossRefGoogle Scholar
Poterba, James M. 1987, “Tax Policy and Corporate Saving,” Brookings Papers on Economic Activity, 18(2): 455516.CrossRefGoogle Scholar
Saito, Makoto. 2008. “On Substitution Between Household Consumption and Equipment Investment.” In Ikeda, Shinsuke, Asako, Kazumi, Ichimura, Hidehiko, and Ito, Hideshi (eds.), Recent Developments in Economics 2008. Tokyo: Toyo Keizai Shinpo-sha (in Japanese).Google Scholar
Saxonhouse, Gary and Stern, Robert. 2004. (eds.) Japan’s Lost Decade: Origins, Consequences and Prospects for Recovery. Oxford, UK: Blackwell Publishing.Google Scholar
Schaede, Ulrike. 2008. Choose and Focus: Japanese Business Strategies for the 21st Century. Cornell University Press.Google Scholar
Shioji, Etsuro. 2009. “Productivity Fluctuations and the Japanese Economy Since the 1990s.” In Fukao, Kyoji (ed.) Japanese Economy in the Period of Bubble/Deflation and Economic Policy. Vol. 1: Macro Economy and Industrial Structure. Keio University Press (in Japanese).Google Scholar
Statistics Bureau, Ministry of Internal Affairs and Communications. 2014. Population Estimates. See: www.stat.go.jp/english/data/jinsui/index.htm, accessed April 13, 2014.Google Scholar
Summers, Lawrence H. 2013. “Speech at IMF Fourteenth Annual Research Conference in Honor of Stanley Fischer.” For transcript, see: http://larrysummers.com/imf-fourteenth-annual-research-conference-in-honor-of-stanley-fischer, accessed May 10, 2014.Google Scholar
The Study Commission on Adjustment of Economic Structure for International Cooperation. 1986. Report of the Study Commission on the Adjustment of Economic Structure for International Cooperation (the so-called Maekawa Report, in Japanese). Tokyo: Cabinet Secretariat, Government of Japan.Google Scholar
Timmer, Marcel, van Moergastel, Ton, Stuivenwold, Edwin, Ypma, Gerard, O’Mahony, Mary, and Kangasniemi, Mari. 2007. EU KLEMS Growth and Productivity Accounts, Part I. Methodology, March. See: www.euklems.net/data/EUKLEMS_Growth_and_Productivity_Accounts_Part_I_Methodology.pdf.Google Scholar

Save book to Kindle

To save this book to your Kindle, first ensure coreplatform@cambridge.org is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about saving to your Kindle.

Note you can select to save to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.

Find out more about the Kindle Personal Document Service.

Available formats
×

Save book to Dropbox

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Dropbox.

Available formats
×

Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

Available formats
×