Changes in subjective mortality expectations and savings during COVID-19: empirical analysis using questionnaire data in Japan

The COVID-19 pandemic may make people feel that they are likely to die in the near future. This study investigates how COVID-19 influences subjective mortality expectations and savings behaviour. We conducted a questionnaire survey in Japan with 2500 individuals, aged 20-79 years, who were working o...

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Bibliographic Details
Published in:Applied economics 2024-09, Vol.56 (44), p.5225-5237
Main Authors: Kinugasa, Tomoko, Masumoto, Kouhei, Yasuda, Koji, Yugami, Kazufumi, Hamori, Shigeyuki
Format: Article
Language:English
Subjects:
Accidents
COVID-19
Economic analysis
endogeneity
Mortality
Motivation
Pandemics
questionnaire data
Questionnaires
saving
Savings
Spouses
subjective mortality
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Summary:The COVID-19 pandemic may make people feel that they are likely to die in the near future. This study investigates how COVID-19 influences subjective mortality expectations and savings behaviour. We conducted a questionnaire survey in Japan with 2500 individuals, aged 20-79 years, who were working or whose spouses were working in January 2021. We empirically analysed the effect of an increase in subjective mortality on savings using the questionnaire response data. According to the questionnaire aggregation 33% of the respondents perceived an increase in the possibility of death because of COVID-19. Our empirical results, based on an instrumental variable method that considers the endogeneity of subjective mortality, show that increases in subjective mortality expectations due to COVID-19 have decreased savings. Therefore, the pandemic has decreased individuals' motivation for saving, to a certain extent, owing to their heightened subjective mortality. Moreover, the experience of serious accidents negatively affects savings, whereas that of disasters has no significant effect.
ISSN:0003-6846
1466-4283
DOI:10.1080/00036846.2023.2244247