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Unraveling The Enigma Of Japan’S Lost Decades: An Econometrics Study Using Var Model, Mingche Sun
Unraveling The Enigma Of Japan’S Lost Decades: An Econometrics Study Using Var Model, Mingche Sun
Senior Projects Spring 2023
This paper investigates the driving factors of Japan’s stagnation for over 20 years. Through reading various studies and reports, the main factors considered in this econometric study are the government policies, including fiscal and monetary policies, demographic change, and the international competition. These are represented by government spending, interest rates, age dependency ratio, and net export, respectively. The Vector Autoregression (VAR) Model is used in two separate periods. The findings show that for the first period (1991-2000), the age dependency ratio, net exports and interest rate slowed down the economy; however, for the second period, the net exports became the …