Growth, secular stagnation and wealth preference

Arbeitspapier

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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ISER Discussion Paper ; No. 946

Classification and Topics

• Classification: Wirtschaft ; Business Fluctuations; Cycles ; General Aggregative Models: Neoclassical
• Subject: long-run stagnation ; aggregate demand deficiency ; wealth preference ; fair wages ; economic growth ; Japan

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Ono, Yoshiyasu
• Event: Veröffentlichung
• (who): Osaka University, Institute of Social and Economic Research (ISER)
• (where): Osaka
• (when): 2015

Further information

• Handle: http://hdl.handle.net/10419/127109
• Last update: 10.03.2025, 11:46 AM CET