-February GDP GDP

-February GDP GDP

- GDP. GDP GDP / GDP DI.. DI..,,.

-February (2010=100) 115 110 105 100 95 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 800 350 750 700 300 650 600 250 550 500 200 450 ( 400 150 1985 87 89 91 93 95 97 99 2001 2003 2005 2007 2009 2011 ()2013 GDP GDP..t.

/, % 6 4 2 0-2 -4-6 -8-10 GDP /, % 4 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 Source: 2 0-2 -4-6

-February.. (%) 18 16 14 12 10 1985 1988 1991 1994 1997 2000 2003 2005 2009 2012 ()2013

- OECD - OECD OECD, (%) 25 20 15 10 5 0 Iceland Czech Denmark Norway Netherlands France Luxembourg Slovakia Germany Slovenia Austria UK Sweden Ireland New Zealand Switzerland Hungary Poland Canada Estonia Portugal Italy Australia Korea Spain Greece Japan USA Chile Turkey Israel Mexico 2012OECD

-February 1974 1984 1987 1988 1989 1995 1999 2007 2015() 10 10.5 10.5 10 10(300) 10(330) 10 (330) 5 (195) 5 (195) 12 12 12 20 20(600) 20(900) 20 (900) 10 (330) 10 (330) 14 14 16 30 30(1,000) 30(1,800) 30(1,800) 20 ( 695) 20 ( 695) 16 17 20 40 40(2,000) 40(3,000) 37(1,800) 23 ( 900) 23 (900) 18 21 25 50 50(2,000) 50 3,000) 33 (1800) 33 (1800) 21 25 30 60 40 (1,800) 40 (1,800) 24 30 35 45 (4,000) 27 35 40 30 40 45 34 45 50 38 50 55 42 55 60 46 60 50 65 55 70 60 65 70 75 8,000 8,000 5,000 5,000 2,000 3,000 1,800 1,800 4,000 18 18 18 16 15 15 13 10 10 () () 93 88 78 76 65 65 50 50 50 19 15 12 6 5 5 4 6 6 ( (13) (14) (14) (7) (3) (3) (3) (1) (1) 170.7 235.7 261.5 261.9 319.8 353.9 382.1 325 325 0.344 0.337 0.356 0.372 0.4338 0.472 0.5263

. GDP

-February / GDP

. GDP... y/y, GDP,....

-February

EU VAT....

-February /. - 30 25 20 15 10 1984 2001 2006 2013 5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

OECD - - 35 30 25 20 15 10 5 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 14 300 12 10 8 6 4 2 0 2013 2006 1 2 3 4 5 6 7 8 9 101112131415161718 250 200 150 100 50 0 2006 2013 1 2 3 4 5 6 7 8 9 101112131415161718

-February GDP.. Case Case Case Case Case Case GDP. CaseCaseCase... (%) 70 60 50 40 30 20 10 (2013) Case 3 Case 2 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Case 1

GDP Case CaseCase... GDP Case. Case. GDP GDP

-February........

GDP Case. GDP. Case. GDP.Case. GDP.

-February -- GDP...... VAT VAT

VAT +. VAT GDP

-February GDP

-February.,.. Stiglitz[] p.xvi

U IT Appendix Appendix Appendix

-February -.-., Stiglitz Vol. REPORT. Vol.:-

ESRI Working Paper No.. HP HP No.- HP JSTAR RIETI Discussion Paper, - J- IMF, World Economic OutlookSeptember Jones, R. S." Income Inequality, Poverty and Social Spending in Japan," Economic Department Working Papers No., Paris: OECD. OECDEconomic Survey of Japan, Paris: OECD OECDGrowing Unequal? Income Distribution and Poverty in OECD Countries, Stiglitz, Joseph, Making Globalization Work: The Next Steps to Global Justice, Penguin Book. Stiglitz, Joseph,The Price of Inequality, W W Norton & Co. Inc.

-February Economic Growth through Distribution of Income in Japan Long-term stagnation of the Japanese economy is mainly due to the deterioration of income distribution where disposable income of total households has constantly declined, and it has put negative pressure on consumer spending. The stagnation of consumption has put strong pressure on economic growth in Japan in recent decades. Analysis based on simulation of changes in household expenditures by income category reveals the fact that a decrease in the disposable income of middle and lower income households has affected the total consumption in the economy, thereby decelerating GDP growth. In order to attain constant growth of the Japanese economy, it would be necessary to introduce a more progressive taxation system, relieving burdens on lower income households in direct income tax and insurance payments. Simulation of introducing a more progressive tax as conducted in this paper reveals the fact that it would have positive effects on total consumption, thereby contributing significantly to GDP growth. The results of these analyses would justify introducing a more progressive tax and insurance system to attain sustainable growth in the medium to long term in Japan. OHTA, Hideaki, Professor, College of International Relations, Ritsumeikan University