Japan’s Decline Relative to the U.S.

Japan’s per capita GDP has fallen from 88 percent of the U.S. one in 1992 to 76 percent in 2007 according to Paul Krugman, who explains that two-thirds of that decline can be explained by an aging population.

But Michael J. Roberts here has a different estimate: three quarters of the relative decline (75%) would be explained by demographics.

Hat tip: Mark Thoma