University of Tokyo
Graduate School of Economics, University of Tokyo
抄録
The purpose of this paper is to explain why Japan's fiscal deficit increased so dramatically in the 1990s and the 2000s. We focus on the role of "stock price targeting" to explain why the fiscal expenditure increased so much. After presenting a simple model to describe government behavior with an optimistic view about stock price and output growth, the paper tests whether the model can explain Japan's fiscal expenditure. The empirical results, using biannual and highfrequency data of the 1990s and the 2000s, show that the stock price targeting can track Japan's fiscal expenditure reasonably well, especially in the 1990s. They imply that without the stock price targeting, the total amount of biannual fiscal stimulus from 1992 to 2000 would have been lower by 2.5 trillion yen on average.
内容記述
Subsequently published in Journal of the Japanese and International Economies, 25(4), pp.447-464, (December 2011).
本文フィルはリンク先を参照のこと
雑誌名
Discussion paper series. CIRJE-F
巻
CIRJE-F-819
発行年
2011-10
書誌レコードID
AA11450569
フォーマット
application/pdf
日本十進分類法
335
出版者
日本経済国際共同センター
出版者別名
Center for International Research on the Japanese Economy
Stock Price Targeting and Fiscal Deficit in Japan : Why Did the Fiscal Deficit Increase during Japan's Lost Decades?
