Considering Japan's lackluster economy for almost last 30 years, I investigated its economic structural changes since the 1970s using a medium-scale NK DSGE model, which features non-Ricardian households, sticky goods prices, and investment-adjustment cost and also detrends real economic variables.I estimated my DSGE model by a Bayesian technique over two terms, 1972Q3-2001Q1 and 1985Q1-2023Q1.The estimation results revealed the following: (1) The share of non-Ricardian households in the population might have increased over time.(2) The Bank of Japan tended to emphasize the inflation rate over the output gap.However, it more weakly responded to the inflation rate in the second term.(3) The Japanese government has implemented sustainable fiscal policies through the entire analysis term.(4) Many economic-variable variations can be attributed to production-technology shock.(5) The interest-rate shock has become a less influential factor for the variations of the non-Ricardian households' consumption, inflation rate, etc. with time.
Motonori Yoshida (Fri,) studied this question.