The growth strategy of Abenomics and fiscal consolidation

Kensuke Miyazawa, Junji Yamada

Research output: Contribution to journalArticle

6 Citations (Scopus)

Abstract

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.

Original languageEnglish
Pages (from-to)82-99
Number of pages18
JournalJournal of the Japanese and International Economies
Volume37
DOIs
Publication statusPublished - Sep 1 2015

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consolidation
Japan
labor force participation rate
retirement age
population policy
equilibrium model
reconstruction
promotion
productivity
reform
simulation
economics
Growth strategy
Fiscal consolidation
Simulation
Fiscal reform
Population policy
General equilibrium model
Overlapping generations
Economic reform

All Science Journal Classification (ASJC) codes

  • Finance
  • Economics and Econometrics
  • Political Science and International Relations

Cite this

The growth strategy of Abenomics and fiscal consolidation. / Miyazawa, Kensuke; Yamada, Junji.

In: Journal of the Japanese and International Economies, Vol. 37, 01.09.2015, p. 82-99.

Research output: Contribution to journalArticle

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