The paper analyses the process of long-run growth in Japan over the period 1957-2001, using a common trends model, in order to asses whether the economic slowdown in Japan over the 1990s has been caused by a productivity slowdown. The paper finds empirical support for the neoclassical growth model: the long-run evolution of the economy may be related to two persistent shocks which bear the interpretation of productivity and labour supply shocks. Coherent with the simulation results of Hayashi and Prescott [Rev. Econ. Dynamics 5 (2002) 206], it is found that, over the 1990s, the potential output path has been characterised by both a reduction in level and slope. Since supply side reforms are still in their infancy, it is likely that the recovery of the Japanese economy is going to be a long-lasting process. © 2003 Elsevier B.V. All rights reserved.

Morana, C. (2004). The Japanese stagnation: An assessment of the productivity slowdown hypothesis. JAPAN AND THE WORLD ECONOMY, 16(2), 193-211 [10.1016/S0922-1425(03)00038-0].

The Japanese stagnation: An assessment of the productivity slowdown hypothesis

MORANA, CLAUDIO
2004

Abstract

The paper analyses the process of long-run growth in Japan over the period 1957-2001, using a common trends model, in order to asses whether the economic slowdown in Japan over the 1990s has been caused by a productivity slowdown. The paper finds empirical support for the neoclassical growth model: the long-run evolution of the economy may be related to two persistent shocks which bear the interpretation of productivity and labour supply shocks. Coherent with the simulation results of Hayashi and Prescott [Rev. Econ. Dynamics 5 (2002) 206], it is found that, over the 1990s, the potential output path has been characterised by both a reduction in level and slope. Since supply side reforms are still in their infancy, it is likely that the recovery of the Japanese economy is going to be a long-lasting process. © 2003 Elsevier B.V. All rights reserved.
Articolo in rivista - Articolo scientifico
Japan; Common trends; Economic growth
English
2004
16
2
193
211
none
Morana, C. (2004). The Japanese stagnation: An assessment of the productivity slowdown hypothesis. JAPAN AND THE WORLD ECONOMY, 16(2), 193-211 [10.1016/S0922-1425(03)00038-0].
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10281/25970
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