Briefing

A Closer Look at Japan's Rising Consumption Tax


Abstract: Japan plans to raise its national consumption tax next week from 8 percent to 10 percent. Some commentators and economists have blamed previous consumption tax increases for causing recessions in 1997 and 2014, but little statistical analysis has been published to support or refute such claims. This Economic Brief highlights new evidence that significant changes in Japan's household consumption behavior did in fact coincide with the 1997 tax hike.

Keywords: Japan; consumption tax; household consumption;

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File(s): File format is text/html https://www.richmondfed.org/publications/research/economic_brief/2019/eb_19-10
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Provider: Federal Reserve Bank of Richmond

Part of Series: Richmond Fed Economic Brief

Publication Date: 2019

Issue: October