This setting lets you change the way you view articles. You can choose to have articles open in a dialog window, a new tab, or directly in the same window.
Open in Dialog
Open in New Tab
Open in same window

American Economic Journal: Applied Economics: Vol. 3 No. 4 (October 2011)

Expand

Quick Tools:

Print Article Summary
Export Citation
Sign up for Email Alerts Follow us on Twitter Subscription Information
(Institutional Administrator Access)

Explore:

AEJ: Applied - All Issues

AEJ: Applied Forthcoming Articles

The Consumption Response to Seasonal Income: Evidence from Japanese Public Pension Benefits

Article Citation

Stephens, Melvin, and Takashi Unayama. 2011. "The Consumption Response to Seasonal Income: Evidence from Japanese Public Pension Benefits." American Economic Journal: Applied Economics, 3(4): 86-118.

DOI: 10.1257/app.3.4.86

Abstract

Japanese public pension benefits, which were distributed quarterly through February 1990, and every other month since then, induce substantial but predictable income fluctuations. The relative magnitude of the payments combined with the delay between payments yields a stronger test of the Life-Cycle/Permanent Income Hypothesis than in prior studies. Applying two identification strategies to monthly household panel data, we find that consumption significantly responds to quarterly benefit receipt. Additional analysis suggests that our findings cannot be explained by either liquidity constraints or precautionary savings motives. (JEL D12, D91, E21, H55)

Article Full-Text Access

Full-text Article

Additional Materials

Download Data Set (46.53 KB)

Authors

Stephens, Melvin (U MI)
Unayama, Takashi (Kobe U)

JEL Classifications

D12: Consumer Economics: Empirical Analysis
D91: Intertemporal Consumer Choice; Life Cycle Models and Saving
E21: Macroeconomics: Consumption; Saving; Wealth
H55: Social Security and Public Pensions

Comments

View Comments on This Article (0) | Login to post a comment


American Economic Journal: Applied Economics


Quick Tools:

Sign up for Email Alerts

Follow us on Twitter

Subscription Information
(Institutional Administrator Access)

Explore:

AEJ: Applied - All Issues

AEJ: Applied - Forthcoming Articles

Virtual Field Journals


AEA Member Login:


AEAweb | AEA Journals | Contact Us