How Do the Japanese Cope with Risk?

In this paper, we examine how Japanese households cope with risk and find (1) that when they encounter unforeseen contingencies, they rely mostly on themselves but that they also rely to some extent on the market, family members, relatives, friends, and the government, (2) that they rely mostly on family members for advice and moral support but not for financial support, (3) that they cope with risk primarily by drawing down their own savings but that they also rely to some extent on insurance, financial transfers, borrowing, and reductions in consumption, and (4) that risk-coping mechanisms and advice-givers vary considerably by event.