In this paper, we employ a cointegration approach to empirically analyze consumer behavior related to service expenditure in Japan. The model we employ is a CRRA utility function considering service and non-durable expenditures. The ratio of service expenditure reached 50% in the 1980s in Japan,...

Intertemporal elasticity of substitution (IES) is an important macroeconomic parameter that relates the real interest rate to consumption and thereby aggregate demand. In this paper, we estimate IES in Japan following Ogaki and Reinhart's two-good model. And given that Japanese economy stagnated...

Public investment decreases aggregate private investment in both neoclassical and Keynesian models. There are no findings, however, on how public investment affects private investment on a disaggregated basis, such as sectoral private investment. More specifically, previous research has...