Working Paper: NBER ID: w7463
Authors: Charles Yuji Horioka; Hideki Fujisaki; Wako Watanabe; Takatsugu Kouno
Abstract: In this paper, we analyze a variety of data on saving motives, bequest motives, and bequest division from the Comparative Survey of Savings in Japan and the United States,' a binational survey conducted in 1996 by the Institute for Posts and Telecommunications Policy of the Ministry of Posts and Telecommunications of the Government of Japan, in order to shed light on which model of household behavior applies in the two countries. We find (1) that the selfish life cycle model is the dominant model of household behavior in both countries but that it is far more applicable in Japan than it is in the U.S., (2) that the altruism model is far more applicable in the U.S. than it is in Japan but that it is not the dominant model of household behavior in either country, and (3) that the dynasty model is more applicable in Japan than it is in the U.S. bu that it is of only limited applicability even in Japan.
Keywords: saving motives; bequest motives; household behavior
JEL Codes: D12; D91; E21
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| selfish life cycle model (D15) | household behavior (D10) |
| selfish life cycle model (Japan) (D15) | household behavior (D10) |
| altruism model (U.S.) (D64) | household behavior (D10) |
| dynasty model (Japan) (O41) | household behavior (D10) |
| selfish life cycle model (D15) | bequest motives (D64) |
| altruism model (U.S.) (D64) | bequest motives (D64) |
| dynasty model (Japan) (O41) | bequest motives (D64) |