Insatiable Wealth Preference: Evidence from Japanese Household Survey

Mika Akesaka, Ryo Mikami and Yoshiyasu Ono
Additional contact information
Ryo Mikami: Faculty of Economics and Law, Shinshu University, JAPAN

No DP2024-16, Discussion Paper Series from Research Institute for Economics & Business Administration, Kobe University

Abstract: This study theoretically considers household behavior with wealth preference and empirically investigates the validity of insatiable wealth preference using a nationally representative survey. With wealth preference, the marginal rate of substitution of asset holdings for consumption depends on the nominal interest rates of assets at each point in time. We focus on this property and find that the marginal utility of holding financial assets remains strictly positive as asset holdings increase and has a strictly positive lower bound, implying the insatiability of wealth preference. This property plays a crucial role in creating secular demand stagnation and expanding asset price bubbles.

Keywords: Wealth preference; Survey data; Secular stagnation; Bubbles (search for similar items in EconPapers)
JEL-codes: D12 E21 E43 E71 (search for similar items in EconPapers)
Pages: 37 pages
Date: 2024-04, Revised 2024-10
New Economics Papers: this item is included in nep-upt
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.rieb.kobe-u.ac.jp/academic/ra/dp/English/DP2024-16.pdf Revised version, 2024 (application/pdf)

Related works:
Working Paper: Insatiable Wealth Preference: Evidence from Japanese Household Survey (2024)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kob:dpaper:dp2024-16

Access Statistics for this paper

More papers in Discussion Paper Series from Research Institute for Economics & Business Administration, Kobe University 2-1 Rokkodai, Nada, Kobe 657-8501 JAPAN. Contact information at EDIRC.
Bibliographic data for series maintained by Office of Promoting Research Collaboration, Research Institute for Economics & Business Administration, Kobe University ().