HOW HIGH CONSUMER PRICES ARE IN JAPAN

This paper focuses on the constant-utility price index in Japan based on economic theory. Our empirical observation confirms the theoretical foundation for our intuition that Japan endures wealth without prospe rity partly because of expensive consumer goods and services. Japanese consumers purchase commodities and services at prices more than 30 pe rcent higher than in the US, the UK, France and Germany. To reduce the price gap between domestic and international markets, deregulation of domestic markets is necessary. (C) 1998 Elsevier Science B.V.