The Effects of Proposals for Basic Pension Reform on the Income Distribution of the Elderly in Japan

The aging of the population in Japan is a serious problem, and the reform of the public pension scheme is a major political issue. Although the 2004 pension reform was enforced to ensure a sustainable pension system in such an aging society, people remain quite apprehensive about the pension system. Consequently, various sectors have created new proposals for pension reform to overcome these problems, and it has become a recent policy debate. The objective of this article is to prepare projections for the income distribution of households containing elderly people using the Japanese microsimulation model, INAHSIM (Integrated Analytical Model for Household Simulation), and to evaluate the effect of the proposals on the living standards of the elderly. According to the simulation results, the problem of very low pension amounts for the elderly does not appear to be growing. However, changes in co-resident families of the elderly, such as the increase in the number of people living alone, may cause a decline in their standard of living. The author points out the problems of the previously proposed reform plans and proposes an alternative reform plan based on the perspective used in this paper.     

The Boosting Effect of E-WOM on Macro-level Consumption: A Cross-Industry Empirical Analysis in Japan

In this study, we carry out an empirical analysis on how electronic word-of-mouth (hereinafter “e-WOM”) marketing on e-WOM websites and electronic-commerce websites on the Internet boosts consumption on a macro-level. In our analysis, we conduct a model analysis of consumer behavior using data composed of more than 30,000 questionnaire surveys and quantitatively find the elasticity coefficient of the boost to consumption by performing a two-step GMM (generalized method of moments), which uses instrumental variables. The results of the analysis show e-WOM significantly increased expenditures in six fields: computers, electrical appliances, etc.; music; hobbies; clothing, accessories, etc.; beauty products, etc.; and goods for everyday life, etc. Furthermore, there was no field that had a significantly negative value. These results showed that, in the majority of the target fields, e-WOM had not only the effect of winning customers from the competition, but also the effect of boosting consumption on a macro-level. In addition, even from people’s subjective evaluations, there were many in all the generational groups who said that e-WOM boosted expenditures.     

The Effect of Information Communication Technology and Corporate Organizational Reforms on Productivity in Japan: Firm- level Evidence

Our main objective in this paper is to understand how Japanese firms can increase productivity by utilizing Information and Communication Technology (ICT). E-commerce, BPO (Business Process Outsourcing), and SCM (Supply Chain Management) are popular in Japan, so a new type of ICT might offer an opportunity for Japanese firms to change current business relations or to start up new ones. The novelty of this paper is in its empirical study of the combination of ICT promotion and a variety of business organizational changes needed to discover which type of business organizational change is suitable for raising productivity in Japan. For workplace organization within firms, we discuss the decentralization or centralization of decision-making power and the flattening of the corporate hierarchy. For business relational changes, we discuss the outsourcing of the business process and the start up of new business relations. Our main result is that in general, the promotion of ICT has better effects in reforms related to changes in business relations among business partners, rather than to reforms within a firm. Starting up new business relations that require planning and R&D show the best chances of raising productivity using ICT promotion.