We will discuss how a household determines the budget allocation to consumption goods and decides consumption and savings. Microeconomics explain that a consumer maximizes utility under budget constraint. However, in reality, a consumer first determines the budget for each consumption item such as food and clothing and then determines individual consumption goods to buy.

To minimize the impact of the COVID-19 pandemic, the Japanese government regulated the mobility of international visitors including students. Before March 2020, international students could enter Japan without restriction. During October and November 2020, a limited number of international students entered Japan with expensive air fares and a 14-day quarantine. However, except these months, many students, especially newly enrolled ones, could not enter Japan.