Narrow Results

Globalization enhances efficiency and economic growth and expands the domain of personal contact and communication. Nonetheless, globalization has also evoked discontent because of claimed social injustice. The relation between globalization and social justice therefore merits attention, in order to identify whether justifications for discontent are present and, if there are reasons for discontent, to establish whether globalization should be blamed.

In this paper, we attempt to shed light on whether Japanese households are rational or if their behavior is influenced by culture and social norms by examining their saving and bequest behavior. To summarize our main findings, we find that Japan’s household saving rate showed great volatility, was often low and even negative and was high only during the 25-year period from around 1960 until the mid-1980s (if we exclude the war years) and that we can explain the high level of, and trends over time in, Japan’s household saving rate via various socioeconomic and policy variables. This seems to suggest that the Japanese are not a saving-loving people and that their saving behavior is not governed by culture and social norms. Moreover, the bequest behavior of the Japanese suggests that they are less altruistic toward their children and less reliant on their children than other peoples, suggesting that the alleged social norm of strong family ties in Japan is largely a myth, and that the Japanese do not appear to be appreciably more concerned about the continuation of the family line or the family business than other peoples, suggesting that the influence of the “ie” (family) system is apparently not so pervasive either. However, we argue that these findings do not necessarily mean that culture and social norms do not matter.

It is a basic consensus that culture affects savings, but the empirical evidence is inadequate. This paper investigates the relationship between culture and savings by using the Hofstede cultural indices, and macro data across 48 countries over the period 1990–2013. The results show that country-fixed effects are highly significant, even if traditional variables are controlled for. We discover that culture can explain much of these individual effects and thus is very important in explaining differences in savings across countries. We use the method of Relative Importance Analysis (RIA) to measure the relative importance of the various cultural dimensions in affecting saving rates. We find that culture-related variables are among the most important saving determinants, along with other variables more commonly used in the economics literature, such as economic growth, social security, and demographics.

This article jointly analyses a behavioural and a cultural concept to explain household debt portfolio choice. The behavioural approach explores the role of time preferences on household debt maturity in a theoretical model and a numerical analysis. We derive a positive relationship between the long-term discount factor δ and the optimal maturity of household loans. The cultural approach examines whether national culture is a reasonable predictor for household debt maturity. We show that culture is an important factor for households’ borrowing decisions and has even more predictive power than time preferences. Countries with higher scores on the Hofstede dimension of long-term orientation tend to have shorter household debt maturity. Time preferences incur a primarily mediating role, because the effect of national culture on the borrowing decision is reduced, as the long-term discount factor δ increases.