Regional deposits and demographic changes

Abstract

This article empirically analyses the relationship between regional deposits and demographic changes. Using different types of deposit data from Japan which has experienced a sharp increase in the number of retirees, we provide clear evidence that an increase in the dependency ratio has led to a decline in overall deposits but an increase in most liquid deposits.

Keywords:

• regional deposits
• demographic changes
• panel cointegration
• panel DOLS

JEL Classification:

• E1
• F4

Notes

¹ While not reported here, our data are found to be nonstationary using the panel Augmented Dickey–Fuller (ADF) unit root test.

² Total Deposits consist of Demand, Time & Savings, Public and Financial Institutions' Deposits.