Cover Page; Title Page; Copyright Page; Contents; I. Introduction; II. Recent Developments with Private Consumption; 1. Private Consumption and Household Disposable Income; 2. Household Saving Rate; 1. Japan: Aggregate Regression Results; III. Policy Attempts to Boost Consumption; 1. Summary of Maekawa Report (1986); IV. Main Drivers of Private Consumption; 3. Household Property Income; 4. Household Financial Assets: Japan and U.S.; 5. Corporate Dividend Payout; 6. Timing of Variable Observation; 2. Japan: Household Panel Regression Results; V. Policy Options and Implications; VI. Conclusion
Summary
Boosting growth through rebalancing is critical for addressing pressures from Japans aging population. This paper focuses on one important untapped source of growth private consumption, and argues that the key to reviving consumption is boosting household disposable income through higher wages, especially in services, and higher property income. The paper also suggests that the impact of higher property income on consumption could be potentially large
