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Income Inequality and the Suicide Rate in Japan: Evidence from Cointegration and La-Var

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  • Kazuyuki Inagaki

Abstract

Using time series techniques, this paper examines the relationship between the suicide rate and income inequality in Japan. Since both the suicide rate and income inequality (Gini coefficient) in Japan are integrated of order one for the sample period 1951–2007, the existence of cointegration is a prerequisite for the successful modeling of their relationship. The Durbin-Hausman test shows that the suicide rate is cointegrated with income inequality and the unemployment rate. The dynamic ordinary least squares (DOLS) and fully modified ordinary least squares (FMOLS) methods demonstrate that income inequality and the unemployment rate are positively and significantly related to the suicide rate in Japan, and there is evidence supporting the parameter stability of our suicide model. Furthermore, the lag-augmented vector autoregression (LA-VAR) approach shows that there exists unidirectional Granger-causality from income inequality to the suicide rate. Hence, the fluctuations in Japan's suicide rate are partially explained by income inequality.

Suggested Citation

  • Kazuyuki Inagaki, 2010. "Income Inequality and the Suicide Rate in Japan: Evidence from Cointegration and La-Var," Journal of Applied Economics, Taylor & Francis Journals, vol. 13(1), pages 113-133, May.
    • Handle: RePEc:taf:recsxx:v:13:y:2010:i:1:p:113-133
    DOI: 10.1016/S1514-0326(10)60006-2
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    Cited by:

    1. Andrew Phiri & Doreen Mukuku, 2020. "Does unemployment aggravate suicide rates in South Africa? Some empirical evidence," Review of Social Economy, Taylor & Francis Journals, vol. 78(4), pages 532-560, October.
    2. Pak, Tae-Young & Choung, Youngjoo, 2020. "Relative deprivation and suicide risk in South Korea," Social Science & Medicine, Elsevier, vol. 247(C).
    3. Yamamura, Eiji, 2015. "Comparison of Social Trust's effect on suicide ideation between urban and non-urban areas: The Case of Japanese Adults in 2006," Social Science & Medicine, Elsevier, vol. 140(C), pages 118-126.
    4. Mitch Kunce, 2022. "The Tenuous Ecological Divorce and Unemployment Link with Suicide: A U.S. Panel Analysis 1968-2020," Journal of Statistical and Econometric Methods, SCIENPRESS Ltd, vol. 11(3), pages 1-2.
    5. Ireen Choga & Fiyinfoluwa Giwa, 2023. "The Effect of Property Tax on Income Redistribution in Selected African Countries," Sustainability, MDPI, vol. 15(7), pages 1-15, March.
    6. Oscar J. Mujica & Dihui Zhang & Yi Hu & Isabel C. Espinosa & Nelson Araneda & Anca Dragomir & George Luta & Antonio Sanhueza, 2023. "Inequalities in Violent Death across Income Levels among Young Males and Females in Countries of the Americas," IJERPH, MDPI, vol. 20(7), pages 1-11, March.
    7. Eiji Yamamura, 2015. "Comparison of Social Capital's Effect on Consideration of Suicide between Urban and Rural Areas," ISER Discussion Paper 0933, Institute of Social and Economic Research, Osaka University.
    8. Malahayati, Marissa, 2023. "Indonesia’s forest management progress: empirical analysis of environmental Kuznets curve," Agricultural and Resource Economics: International Scientific E-Journal, Agricultural and Resource Economics: International Scientific E-Journal, vol. 9(3), September.
    9. Andrés, Antonio R. & Halicioglu, Ferda & Yamamura, Eiji, 2011. "Socio-economic determinants of suicide in Japan," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 40(6), pages 723-731.
    10. Sungik Kang & Hosung Woo & Ja-Hoon Koo, 2021. "Precarious Suicide Behavior According to Housing Price Gap: A Case Study on South Korea," IJERPH, MDPI, vol. 18(18), pages 1-15, September.
    11. Hock-Han Tee & Hway-Boon Ong, 2016. "Cashless payment and economic growth," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 2(1), pages 1-9, December.

    More about this item

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • I10 - Health, Education, and Welfare - - Health - - - General

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