Creator: Hayashi, Fumio Series: Quarterly review (Federal Reserve Bank of Minneapolis. Research Department) Number: Vol. 13, No. 2 Abstract:
There are two major differences between Japan and the United States in the way saving is calculated in their national accounts. First, depreciation in Japanese national accounts is based on historical costs, which leads to an understatement of true depreciation and hence an overstatement of net saving. Second, government capital formation is not included in U.S. saving. This article adjusts the official Japanese saving numbers by evaluating depreciation at replacement costs and excluding government capital formation from saving. Doing so significantly reduces the apparent gap between the national saving rates of the two countries. Since 1970 Japan's national saving rate has been declining to the stationary U.S. rate. This trend, however, has been reversed in recent years. In contrast, Japan's wealth-to-income ratio (excluding land), after declining in the late 1950s, has been rising toward the U.S. ratio and has reached the U.S. level in 1987.
Creator: Kehoe, Timothy Jerome, 1953- and Prescott, Edward C. Description:
The worldwide Great Depression of the 1930s was a watershed for both economic thought and economic policymaking. It led to the belief that market economies are inherently unstable and to the revolutionary work of John Maynard Keynes. Its impact on popular economic wisdom is still apparent today.
This book, which uses a common framework to study sixteen depressions, from the interwar period in Europe and America as well as from more recent times in Japan and Latin America, challenges the Keynesian theory of depressions. It develops and uses a methodology for studying depressions that relies on growth accounting and the general equilibrium growth model.
Each chapter of the book is accompanied by a data file that contains all of the data used in the analysis. These files can be found in the Great Depressions of the Twentieth Century: Supporting Data and Code collection.
Table of Contents
Great Depressions of the Twentieth Century by Timothy J. Kehoe and Edward C. Prescott
A Second Look at the U.S. Great Depression from a Neoclassical Perspective by Harold L. Cole and Lee E. Ohanian
The Great U.K. Depression: A Puzzle and Possible Resolution by Harold L. Cole and Lee E. Ohanian
The Great Depression in Canada and the United States: A Neoclassical Perspective by Pedro Amaral and James C. MacGee
The French Depression in the 1930s by Paul Beaudry and Franck Portier
The Role of Real Wages, Productivity, and Fiscal Policy in Germany's Great Depression, 1928-37 by Jonas D. M. Fisher and Andreas Hornstein
The Great Depression in Italy: Trade Restrictions and Real Wage Rigidities by Fabrizio Perri and Vincenzo Quadrini
Argentina's Lost Decade and the Subsequent Recover Puzzle by Finn E. Kydland and Carlos E. J. M. Zarazaga
A Decade Lost and Found: Mexico and Chile in the 1980s by Raphael Bergoeing, Patrick J. Kehoe, Timothy J. Kehoe, and Raimundo Soto
The 1990s in Japan: A Lost Decade by Fumio Hayashi and Edward C. Prescott
The Brazilian Depression in the 1980s and 1990s by Mirta S. Bugarin, Roberto Ellery Jr., Victor Gomes, and Arilton Teixeira
Tariffs and the Great Depression Revisited by Mario J. Crucini and James A. Kahn
Recent Great Depressions: Aggregate Growth in New Zealand and Switzerland by Timothy J. Kehoe and Kim J. Ruhl
What Can We Learn from the 1998-2002 Depression in Argentina? by Timothy J. Kehoe
Prosperity and Depression by Edward C. Prescott
Modeling Great Depressions: The Depression in Finland in the 1990s by Juan Carlos Conesa, Timothy J. Kehoe, and Kim J. Ruhl