Japan will face rapid demographic aging during the coming decades. Policy debate should take into account economic analysis based on the medium to long-run projections of demographics, government expenditures, and revenues. It is critical to understand how individuals of different ages and socio-economic classes are affected by alternative policies and what are the implied trade-offs across generations. We build macroeconomic models based on individuals' lifecycle decisions and quantitatively analyze the effects of policies in the Japanese economy currently facing ongoing demographic transition. Our goal is to analyze the effects of policy changes on the aggregate economy and individual welfare by building a model that aligns with micro data and incorporates details of key policy institutions.
August 13, 2018 - July 31, 2020