Abstract.Day2.Fukuda

Introduction to the Japanese NTA Data: Its Methodological Features

Setsuya Fukuda, Takashi Suzuki, Yoshinori Nishimura

Abstract: The Japanese NTA data, released in March 2023, went beyond the standard NTA methodology described in the UN NTA manual. Several adjustments and refinements were implemented in the estimation of NTA variables. These implementations include 1) adjusting the seasonality of private consumption, 2) having more granular variables for public transfer to represent the Japanese social security system, 3) applying separate tax/social security contribution rates, including the dependent deduction, for each public transfer, 4) adjusting the old-age profiles of the private health and long-term care to counter selection effects, and 5) estimating the inter-household transfer inflow/outflow to students who live in single private households in the construction of the inter-household transfer variables. We introduce some of these features and argue that these implementations are crucial for using NTA for actual policy analysis.