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Why are Saving Rates of Urban Households in China Rising?, Marcos Chamon, Eswar Prasad

Abstract
From 1995 to 2005, the average urban household saving rate in China rose by 7 percentage points, to ¼ of disposable income. We use household-level data to explain the postponing of consumption despite rapid income growth. Tracing cohorts over time indicates virtually no consumption smoothing over the life cycle. Saving rates have increased across all demographic groups, although the age-profile of savings has an unusual U-shaped pattern, with saving rates being the highest among the youngest and oldest households in recent years. These patterns are best explained by the rising private burden of expenditures on housing, education, and health care
Table Of Contents
Contents; I. Introduction; II. Data; III. Stylized Facts; IV. Demographic Determinants of Household Saving Behavior; V. Potential Explanations; A. Habit Formation; B. Shifts in Social Expenditures; C. Durables Purchases and Savings; D. Housing Purchases and Savings; E. Effects of State Enterprise Restructuring on Saving Behavior; F. Target Savings; V. A Composite Sketch; VI. Discussion and Implications for Aggregate Saving Patterns; Appendix; Text Tables; 1. Summary Statistics; 2. Representativeness of 10 Provinces/Municipalities Sub-Sample; 3. Consumption Growth and Habit Formation
Language
eng
Literary Form
non fiction
Note
"June 2008."
Physical Description
1 online resource (51 p.)
Specific Material Designation
remote
Form Of Item
online
Isbn
9781451870039

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