Home > Publications . Search All . Browse All . Country . Browse PSC Pubs . PSC Report Series

PSC In The News

RSS Feed icon

Former trainee Herbert says residential squatters may be a good thing

Work by Couper, Farley et al. shows impact of racial composition on neighborhood choice

Thompson details killings and shaping of official narrative in 1971 Attica prison uprising

More News

Highlights

Michigan ranked #12 on Business Insider's list of 50 best American colleges

Frey's new report explores how the changing US electorate could shape the next 5 presidential elections, 2016 to 2032

U-M's Data Science Initiative offers expanded consulting services via CSCAR

Elizabeth Bruch promoted to Associate Professor

Next Brown Bag

PSC Brown Bags
will resume fall 2016

Melvin Stephens, Jr photo

The Consumption Response to Seasonal Income: Evidence from Japanese Public Pension Benefits

Publication Abstract

Stephens, Melvin, and Takashi Unayama. 2011. "The Consumption Response to Seasonal Income: Evidence from Japanese Public Pension Benefits." American Economic Journal: Applied Economics, 3(4): 86-118.

Japanese public pension benefits, which were distributed quarterly through February 1990, and every other month since then, induce substantial but predictable income fluctuations. The relative magnitude of the payments combined with the delay between payments yields a stronger test of the Life-Cycle/Permanent Income Hypothesis than in prior studies. Applying two identification strategies to monthly household panel data, we find that consumption significantly responds to quarterly benefit receipt. Additional analysis suggests that our findings cannot be explained by either liquidity constraints or precautionary savings motives.

DOI:10.1257/app.3.4.86 (Full Text)

Country of focus: Japan.

Browse | Search : All Pubs | Next