Working Less and Bargain Hunting More

Macroimplications of Sales during Japan's Lost Decades

Nao Sudo, Kozo Ueda, Kota Watanabe, Tsutomu Watanabe

    Research output: Contribution to journalArticle

    1 Citation (Scopus)

    Abstract

    Standard New Keynesian models have often neglected temporary sales. In this study, we ask whether this treatment is appropriate. We use Japanese scanner data covering the last two decades and find a negative correlation between the frequency of sales and hours worked. We then construct a model that takes households' decisions regarding their allocation of time for work, leisure, and bargain hunting into account. We show that the decline in hours worked explains the rise in the frequency of sales. The real effect of monetary policy shocks weakens by around 40% due to temporary sales, but monetary policy still matters.

    Original languageEnglish
    Pages (from-to)449-478
    Number of pages30
    JournalJournal of Money, Credit and Banking
    Volume50
    Issue number2-3
    DOIs
    Publication statusPublished - 2018 Mar 1

    Fingerprint

    Hunting
    Japan
    Hours worked
    Household
    New Keynesian model
    Monetary policy shocks
    Allocation of time
    Leisure
    Monetary policy
    Scanner data

    Keywords

    • E31
    • E32
    • E52
    • lost decades
    • monetary policy
    • sales
    • time use

    ASJC Scopus subject areas

    • Accounting
    • Finance
    • Economics and Econometrics

    Cite this

    Working Less and Bargain Hunting More : Macroimplications of Sales during Japan's Lost Decades. / Sudo, Nao; Ueda, Kozo; Watanabe, Kota; Watanabe, Tsutomu.

    In: Journal of Money, Credit and Banking, Vol. 50, No. 2-3, 01.03.2018, p. 449-478.

    Research output: Contribution to journalArticle

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