Yamada Tomoaki    Department   Undergraduate School  , School of Commerce    Position   Professor
Language	English
Publication Date	2007/06
Type	Other
Title	Consumption, Working Hours, and Wealth Determination in Life Cycle
Contribution Type	Co-authored (other than first author)
Journal	Bank of Japan, Working Paper Series
Volume, Issue, Page	07-E-14,pp.1-42
Author and coauthor	Naohito Abe,Noriko Inakura
Details	This paper presents an empirical analysis of a life cycle model. We incorporate labor supply and family structure into the standard precautionary saving model and estimate structural parameters based on the moment conditions for the life cycle profiles of consumption, labor hours, and wealth accumulation. Our empirical analyses with Japanese household data reveal that consideration of family structure is crucial in fitting several different profiles simultaneously. Although the model fits well in terms of average profiles, we also show that the model has some problems in explaining the covariance structure. The data show too little correlation between labor and income to be consistent with the model.