A Proposal for a New Economic Stimulus Package

No.29
April 1998
Fujitsu Research Institute, Economic Research Center

1. The amortization of individuals' durable goods consumption and home buying should be authorized as one policy that could directly stimulate consumption and home investment. It would result in large-scale tax reductions for durable goods consumption and home buying (a tax reduction effect of 2.7 trillion yen, and a 4.6 trillion yen increase in demand). Furthermore, additional amortization for the kinds of durable goods and home buying that respond to environmental, welfare, and computerization needs should be allowed in order to promote consumption in these fields.
2. In public-works projects, proactive utilization of PFI (private finance initiative) should be promoted in developing social capital, which will suppress the expansion of conventional public investment.
3. Regarding the maintenance and provision of communications infrastructure, it is necessary to actively promote the introduction of much-needed information equipment (e.g. computers, etc.) into the nation's schools.

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