TY - JOUR
T1 - The growth strategy of Abenomics and fiscal consolidation
AU - Miyazawa, Kensuke
AU - Yamada, Junji
N1 - Funding Information:
An earlier version of this paper was presented at the APEA and TCER conferences. We are grateful for the helpful comments of an anonymous reviewer, Tomoaki Yamada, Real Arai, and other participants. We also wish to express our appreciation to the Editor of this journal, Shin-ichi Fukuda. We would like to acknowledge financial support from JSPS Grant-in-Aid for Scientific Research (B) ( 24330094 ). Yamada is grateful for financial support by JSPS Grant-in-Aid for Challenging Exploratory Research and Core-to-Core Program (B), Asia–Africa Science Platforms .
Publisher Copyright:
© 2015 Elsevier Inc.
PY - 2015/9/1
Y1 - 2015/9/1
N2 - Using a general equilibrium model with an overlapping generation structure, this study examines the impacts of a new Abenomics growth strategy on fiscal consolidation in Japan. Our simulation yielded the following results. (i) It is difficult to achieve the government target of fiscal consolidation by the year 2020 even when assuming that the growth strategy has the desired effects. (ii) Moreover, further economic and fiscal reforms are required from 2030 to 2070 because of accelerated population aging. (iii) However, population policy and an extended retirement age contribute to significant improvements in Japan's fiscal condition after 2070. (iv) In contrast, the promotion of productivity and the labor force participation rate have a lesser impact on fiscal reconstruction.
AB - Using a general equilibrium model with an overlapping generation structure, this study examines the impacts of a new Abenomics growth strategy on fiscal consolidation in Japan. Our simulation yielded the following results. (i) It is difficult to achieve the government target of fiscal consolidation by the year 2020 even when assuming that the growth strategy has the desired effects. (ii) Moreover, further economic and fiscal reforms are required from 2030 to 2070 because of accelerated population aging. (iii) However, population policy and an extended retirement age contribute to significant improvements in Japan's fiscal condition after 2070. (iv) In contrast, the promotion of productivity and the labor force participation rate have a lesser impact on fiscal reconstruction.
UR - http://www.scopus.com/inward/record.url?scp=84938419916&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=84938419916&partnerID=8YFLogxK
U2 - 10.1016/j.jjie.2015.05.004
DO - 10.1016/j.jjie.2015.05.004
M3 - Article
AN - SCOPUS:84938419916
SN - 0889-1583
VL - 37
SP - 82
EP - 99
JO - Journal of the Japanese and International Economies
JF - Journal of the Japanese and International Economies
ER -