Transfer and Life-cycle Wealth in Japan, 1974–1984

In this paper I use the cumulation-of-life-cycle saving method to measure the contribution of transfers to total wealth accumulation over the 1974 to 1984 period among worker households in Japan. I find that under either the Modigliani or Kotlikoff and Summers definitions of transfer wealth, capital accumulation for these households is largely the result of life-cycle saving. This study differs from earlier papers on this topic, which drew similar conclusions, by its close application of the two definitions of transfer wealth and by its extensive use of simulation analysis.
JEL Classification Numbers: D12 D91 E21