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Was Japan's Level of Investment in the 1990's Excessive?

Author

Listed:
  • Ross S. Guest

    (Griffith University, Australia)

  • Ian M. McDonald

    (University of Melbourne, Australia)

Abstract

In this paper a method for calculating the socially optimal level of aggregate investment is developed. That method is then applied to Japan. It is found that in the 1990's the level of investment in Japan was excessive, in the sense that it exceeded the socially optimal level. The degree of over-investment in Japan in the 1990's has averaged about 5.5 per cent of GDP per year according to the calculations in this paper.

Suggested Citation

  • Ross S. Guest & Ian M. McDonald, 2003. "Was Japan's Level of Investment in the 1990's Excessive?," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 48(01), pages 13-26.
    • Handle: RePEc:wsi:serxxx:v:48:y:2003:i:01:n:s0217590803000633
    DOI: 10.1142/S0217590803000633
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    References listed on IDEAS

    as
    1. Hurd, Michael D. & Yashiro, Naohiro (ed.), 1997. "The Economic Effects of Aging in the United States and Japan," National Bureau of Economic Research Books, University of Chicago Press, edition 1, number 9780226361000.
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