Life cycle and bequest savings A study of Japanese and U.S. households based on data from the 1984 NSFIE and the 1983 survey of consumer finances

Household Savings and Wealth Distribution in Japan

“…As the economic status of the independent old is substantially better than that of the dependent old, the old-age saving behavior would have a self-selection bias if we do not make such adjustments. Hayashi et al (1988a) suggest a method of removing this bias by comparing nuclear families and extended families whose younger generation is similarly aged. We find, however, that this method needs to be refined due to insufficient control of household characteristics to carry out statistical matching between nuclear and extended families.…”

“…As to the second point, Hayashi et al (1988a) argue that the bulk of intergenerational transfers take place in the form of bequests and that bequests come not only from the independent (nuclear) old but also from the pool of extended families that seem to accumulate wealth regardless of the parents' age. Barthold and Ito (1992), using bequest tax filing information, show that about one-third to one-half of household assets are obtained by bequests in Japan, which implies that the old households do not dissave enough and leave sizable bequests, intended or not.…”

Household savings in Japan revisited

“…As the economic status of the independent old is substantially better than that of the dependent old, the old age saving behavior would have a self-selection bias if we do not make such adjustments. Hayashi, Ando and Ferris (1988) suggests a method of removing this bias by comparing nuclear families and extended families whose younger generation is similarly aged. We find however characteristics (e.g.…”

“…Takayama and Kitamura (1994) provides a complementary estimation method of intergenerational transfers to Hayashi, Ando and Ferris (1988).…”

“…He identifies key stylized facts; (1) Japan's saving rate is not as high as commonly thought, and (2) the accumulation of wealth by Japanese households starts very early and lasts until very late in life, with unconsumed wealth transferred to the next generation in the form of bequests. As to the second point, Hayashi, Ando, and Ferris (1988) argues that the bulk of intergenerational transfers take place in the form of bequests and that bequests come not only from the independent (nuclear) old, but also from the pool of extended families that seem to accumulate wealth regardless of the parents' age. Barthold and Ito (1992), using bequest tax filing information, shows that about one-third to one-half of household assets are obtained by bequests in Japan.…”