American Economic Journal:
Macroeconomics
ISSN 1945-7707 (Print) | ISSN 1945-7715 (Online)
Why Are Saving Rates of Urban Households in China Rising?
American Economic Journal: Macroeconomics
(pp. 93–130)
Abstract
From 1995 to 2005, the average urban household savings rate in China rose by 7 percentage points, to about one-quarter of disposable income. Savings rates increased across all demographic groups, and the age profile of savings has an unusual pattern in recent years, with younger and older households having relatively high savings rates. We argue that these patterns are best explained by the rising private burden of expenditures on housing, education, and health care. These effects and precautionary motives may have been amplified by financial underdevelopment, including constraints on borrowing against future income and low returns on financial assets. (JEL D14, E21, O12, O18, P25, P36)Citation
Chamon, Marcos D., and Eswar S. Prasad. 2010. "Why Are Saving Rates of Urban Households in China Rising?" American Economic Journal: Macroeconomics 2 (1): 93–130. DOI: 10.1257/mac.2.1.93JEL Classification
- D14 Personal Finance
- E21 Macroeconomics: Consumption; Saving; Wealth
- O12 Microeconomic Analyses of Economic Development
- O18 Economic Development: Regional, Urban, and Rural Analyses; Transportation
- P25 Socialist Systems and Transitional Economies: Urban, Rural, and Regional Economics
- P36 Socialist Institutions and Their Transitions: Consumer Economics; Health; Education and Training: Welfare, Income, Wealth, and Poverty