The saving rate in Japan has declined rapidly. Analyzing the possible four factors that could affect the saving rate in general, compared with theoretical implications, the data suggest that all elements might have a negative impact on the saving rate during the late 90s and early 00s. Such a...

This paper operationalizes Dahlby's (1998) theoretical analysis on the social marginal cost of public funds (SMCF) with microdata on Japanese prime-age males. Our exercise, however, is more than an application. First, we derive the formula for the SMCF that differentiates every individual....