Arbeitspapier
Growth, secular stagnation and wealth preference
In 1960s - 1980s Japan enjoyed high economic growth. In the early 1990s, however, the growth rate drastically declined and thereafter Japan has been suffering secular stagnation. This paper proposes a dynamic macroeconomic model that can consistently explain such a drastic change in economic performance. Wealth preference plays an important role. In the early stage consumption grows at the same pace as productivity increases. Once consumption reaches a certain level, however, it deviates from the full-employment level and aggregate demand deficiency appears. After that the economic growth rate asymptotically approaches zero even if productivity keeps on increasing, and secular stagnation arises.
- Language
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Englisch
- Bibliographic citation
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Series: ISER Discussion Paper ; No. 946
- Classification
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Wirtschaft
Business Fluctuations; Cycles
General Aggregative Models: Neoclassical
- Subject
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long-run stagnation
aggregate demand deficiency
wealth preference
fair wages
economic growth
Japan
- Event
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Geistige Schöpfung
- (who)
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Ono, Yoshiyasu
- Event
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Veröffentlichung
- (who)
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Osaka University, Institute of Social and Economic Research (ISER)
- (where)
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Osaka
- (when)
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2015
- Handle
- Last update
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10.03.2025, 11:46 AM CET
Data provider
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Object type
- Arbeitspapier
Associated
- Ono, Yoshiyasu
- Osaka University, Institute of Social and Economic Research (ISER)
Time of origin
- 2015