Makiko Shinoda

Japan's primary challenge is to increase its capital and labor productivity. The purpose of this study is to understand the reasons for Japan's dismal economic performance in the 1990s and help policy makers prioritize reforms. To achieve this, MGI analyzed Japan's output and productivity gap relative to the US. Objectives and Approach The purpose of this study is to understand the reasons for Japan's dismal economic performance in the 1990s and help policy makers prioritize reforms.

While the health care system in Japan offers low-cost care to patients, it provides undistinguished service when compared with international benchmarks. Currently, there is little competition in each of the markets that make up the health care system. Japan could dramatically improve the performance of its health care sector by replacing the current fee-for-service system and creating a level and competitive playing field for hospitals.

In Japan, construction companies rarely compete on price, requiring consumers to amass substantial savings before they can afford a single-family home. Encouraging a secondary housing market and establishing standard designs, methods, and materials would give the residential construction industry the push it needs to become more productive. In Japan, construction companies rarely compete on price, requiring consumers to amass substantial savings before they can afford a single-family home.