The Determinants of Household Saving in China: A Dynamic Panel Analysis of Provincial Data

Charles Yuji Horioka · Junmin Wan

169 citations0/0 files storedNational Bureau of Economic Research

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

Financial Literacy, Pension, Retirement Analysis Monetary Policy and Economic Impact Economic Theory and Policy

Abstract

In this paper, we conduct a dynamic panel analysis of the determinants of the household saving rate in China using a life cycle model and panel data on Chinese provinces for the 1995-2004 period from China?s household survey.We find that China?s household saving rate has been high and rising and that the main determinants of variations over time and over space therein are the lagged saving rate, the income growth rate, (in many cases) the real interest rate, and (in some cases) the inflation rate.However, we find that the variables relating to the age structure of the population have the expected impact on the household saving rate in only one of the four samples.These results provide mixed support for the life cycle hypothesis as well as the permanent income hypothesis, are consistent with the existence of inertia or persistence, and imply that China?s household saving rate will remain high for some time to come.

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 169 citations exist upstream.

References

1991Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations 1995Another look at the instrumental variable estimation of error-components models 1995Initial conditions and moment restrictions in dynamic panel data models 1988China statistical yearbook 2007World Population Prospects The 2006 Revision 2004A finite sample correction for the variance of linear efficient two-step GMM estimators 2007How to do Xtabond2: An Introduction to Difference and System GMM in Stata 2002Dynamic panel data models: a guide to microdata methods and practice

Cited by

2011Public pension and household saving: Evidence from urban China 2009Rebalancing Growth in Asia 2012Income inequality as a cause of the Great Recession? A survey of current debates 2013The Chinese Growth Miracle 2012Aggregate Savings and External Imbalances in China 2017Demographics and aggregate household saving in Japan, China, and India

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.