ESRI Discussion Paper Series No.55
Asset Holding and Consumption:
Evidence from Japanese Panel Data in the 1990s

Aug, 2003
Masahiro Hori
(Cabinet Office)
Satoshi Shimizutani
(Economic and Social Research Institute, Cabinet Office)


The 1990s crash in Japan's stock and land market should have had adverse effects on household consumption. This paper takes advantage of a panel data from Japanese households to evaluate the impacts of the wealth gains or losses on households' spending. We obtain the following empirical findings. First, stockholders' consumption is responsive to stock market movements while this is not the case for non-stockholders, suggesting the importance of "direct" wealth effects. Second, we compared the marginal propensity to consume (MPC) out of stock price changes and real estate price changes, and found that they are roughly comparable. The MPC out of wealth gains or losses is estimated to be 0.05 to 0.1 slightly higher than estimates reported in previous studies on Japanese consumption using aggregate data.

Structure of the whole text(PDF-Format 1file)

  1. full text別ウィンドウで開きます。(PDF-Format 130 KB)
  2. abstract
  3. page3
    1. Introduction
  4. page4
    2. Literature Review
  5. page6
    3. Data
  6. page8
    4. Direct vs. Indirect Effects on Consumption by Assetholders and Non-holders
  7. page11
    5. Estimates of the MPC out of wealth gains/losses
  8. page13
    6. Conclusion
  9. page14
  10. page15
    Figures and Tables
  • 1-6-1 Nagata-cho, Chiyoda-ku, Tokyo 100-8914, Japan.
    Tel: +81-3-5253-2111