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Consumer Confidence and the Japanese Economy -Comparison of Pre- and Post-Bubble Period-

Author

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  • Atsuo Utaka

    (Kyoto University)

Abstract

This paper investigates the effect of confidence on the Japanese economy by using vector autoregressions. Especially, I divide the total estimation period into two parts, pre- and post-bubble periods, and analyze the transition of that effect through the ages. It is shown that consumer confidence has a significant effect on GDP. Moreover, that effect becomes larger in a post-bubble period than in a pre-bubble period, which implies that the low level of confidence has worsened the economic condition in the lost (two) decade(s) after the bubble period.

Suggested Citation

  • Atsuo Utaka, 2014. "Consumer Confidence and the Japanese Economy -Comparison of Pre- and Post-Bubble Period-," Economics Bulletin, AccessEcon, vol. 34(2), pages 1165-1173.
    • Handle: RePEc:ebl:ecbull:eb-13-00359
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    References listed on IDEAS

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    Cited by:

    1. Petar Sorić & Mirjana Čižmešija & Marina Matošec, 2020. "EU Consumer Confidence and the New Modesty Hypothesis," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 152(3), pages 899-921, December.
    2. Lenka Mynaříková & Vít Pošta, 2023. "The Effect of Consumer Confidence and Subjective Well-being on Consumers’ Spending Behavior," Journal of Happiness Studies, Springer, vol. 24(2), pages 429-453, February.
    3. Petar Sorić, 2020. "“Normal†growth of the Chinese economy: new metrics based on consumer confidence data," Economics Bulletin, AccessEcon, vol. 40(2), pages 1740-1746.
    4. Čižmešija Mirjana & Lukač Zrinka & Novoselec Tomislav, 2019. "Nonlinear optimisation approach to proposing novel Croatian Industrial Confidence Indicator," Croatian Review of Economic, Business and Social Statistics, Sciendo, vol. 5(2), pages 17-26, December.

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    More about this item

    Keywords

    consumer confidence; GDP fluctuations;

    JEL classification:

    • E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles
    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment

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