An empirical re-evaluation of wealth effect in Japanese household behavior

Ogawa, Kazuo; Kitasaka, Shin-ichi; Yokota, Hiroshi; Iwata, Yasuharu

doi:10.1016/0922-1425(96)00218-6

Cited by 28 publications

(20 citation statements)

References 12 publications

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“…13 Ogawa et al (1996) obtained evidence showing that liquid wealth is the most important among a variety of wealth variables in determining consumption. They based their inference on prefectural panel data taken from The Annual Report on Prefectural Accounts.…”

Section: Construction Of the Variablesmentioning

confidence: 98%

Household debt and consumption: A quantitative analysis based on household micro data for Japan

Ogawa

Wan

2007

Journal of Housing Economics

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Section: Construction Of the Variablesmentioning

confidence: 98%

Household debt and consumption: A quantitative analysis based on household micro data for Japan

Ogawa

Wan

2007

Journal of Housing Economics

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“…This part of demand may decrease consumption based on unfavorable expectations regarding future income and costs. Another example can be drawn from Ogawa, Kitasaka, Yamaoka, and Iwata (1996), who found that the liquidity of unrealized wealth is also an important determinant of consumption. Even if the asset appreciates the owners may not view it as a capital gain due to illiquidity of the asset, a lack of information on reference prices, or consumption needs such as continued residence.…”

Section: Introductionmentioning

confidence: 99%

Do expectations of future wealth increase outbound tourism? Evidence from Korea

et al. 2012

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a b s t r a c tAs international tourism is generally considered a luxury good, models to date have shared an understanding that demand is dependent on discretionary income. However, consumption theories predict that a shift in demand can be induced without changes in actual earnings when expectations for future income are adjusted. This presumes demand for international tourism can be influenced by "wealth effects" from real estate and financial assets. This study tested for the wealth effect on Korean outbound travelers during the 20 years between 1989 and 2009. Korea is a unique place to examine in that Korean households possess housing assets and financial assets that are traded actively in markets. The results of this study favored the possibility of a significant wealth effect from housing on outbound travel demand, but not from financial assets. This may be explained by data sensitivity and the relative importance of financial assets in the Korean people's wealth portfolios. Implications and suggestions for future research are provided along with the findings of the study.

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“…In Japan, Mutoh et al (1993) and Ogawa (1992), Horioka (1996) and Ogawa et al (1996) The studies mentioned above are based on the life cycle model and the permanent income hypothesis, as they suggest that consumers distribute increases in anticipated wealth over time and that the marginal propensity to consume out of wealth should be the same no matter what asset categories are considered.…”

Section: Introductionmentioning

confidence: 99%