scholarly journals Why Are Saving Rates of Urban Households in China Rising?

2010 ◽  
Vol 2 (1) ◽  
pp. 93-130 ◽  
Author(s):  
Marcos D. Chamon ◽  
Eswar S. Prasad
Keyword(s):  
Financial Assets ◽  
Household Savings ◽  
Demographic Groups ◽  
Education And Health ◽  
Savings Rate ◽  
Future Income ◽  
China Rose ◽  
Age Profile ◽  
Saving Rates ◽  
Savings Rates

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)

Social Norms and Household Savings Rates in China

2018 ◽  
Vol 23 (5) ◽  
pp. 961-991
Author(s):  
Yvonne Jie Chen ◽  
Zhiwu Chen ◽  
Shijun He
Keyword(s):  
Social Norms ◽  
Filial Piety ◽  
Household Finance ◽  
Household Savings ◽  
Savings Rate ◽  
Model Predictions ◽  
Enforcement Mechanisms ◽  
Using Data ◽  
Period Model ◽  
Savings Rates

Abstract We study the effects of Confucian social norms on savings rates in China. In our simple two-period model, parents have the option to invest in either a risk-free asset or their children’s human capital. We assume that the filial piety norms and thus the enforcement mechanisms for supporting old-age parents differ across regions. Consequently, the probability of children’s non-performance of their repayment obligations to parents and the returns parents can expect from investing in their children vary. We test the model predictions using data from the China Household Finance Survey. We find that stronger Confucian social norms reduce the gap in the savings rate between families with sons and with daughters. Modeling default by children as a function of the prevailing social norms gives us the flexibility to study the impacts of declining Confucian influence on consumption–savings trends in China.

scholarly journals Population Aging, Household Savings and Asset Prices: A Study Based on Urban Commercial Housing Prices

2019 ◽  
Vol 11 (11) ◽  
pp. 3194 ◽  
Author(s):  
Shihong Zeng ◽  
Xinwei Zhang ◽  
Xiaowei Wang ◽  
Guowang Zeng
Keyword(s):  
Asset Prices ◽  
Negative Impact ◽  
Interaction Analysis ◽  
Population Aging ◽  
Housing Prices ◽  
The Elderly ◽  
Dependency Ratio ◽  
Household Savings ◽  
Savings Rate ◽  
The Impact

Currently, China’s aging population, high savings rate and high housing asset prices coexist, which has become a hot issue in academic research. First, considering the life-cycle hypothesis and overlapping generations model, asset prices are negatively correlated with the population dependency ratio and positively correlated with household savings. Second, based on census data from prefecture-level cities, a pooled regression model and two-stage least squares (2SLS) are used in this empirical research. The child dependency ratio was found to have a significant negative impact on housing prices, while the elderly dependency ratio had a positive impact on housing prices. The positive relationship between household savings and housing prices is highly significant. Finally, the interaction analysis shows that the impact of population aging on housing prices differs under different levels of household savings; thus, population aging affects housing prices through household savings, and the mediator dilutes and weakens this impact. The elderly generation’s release of savings could gradually inhibit housing prices. Population aging causes long-run downside risks but not a market meltdown.

National Character and Personal Savings

1997 ◽  
Vol 80 (3) ◽  
pp. 1018-1018
Author(s):  
Bijou Yang ◽  
David Lester
Keyword(s):  
National Character ◽  
Household Savings ◽  
Savings Rate ◽  
Industrialized Nations ◽  
Personal Savings

For 14 industrialized nations in 1960, the household savings rate was positively associated with indices of national character, positively with neuroticism and negatively with extraversion.

scholarly journals Household Saving in Pakistan: Some Findings from Time-Series Data

1981 ◽  
Vol 20 (4) ◽  
pp. 375-397 ◽  
Author(s):  
Zia M. Qureshi
Keyword(s):  
Time Series ◽  
Time Series Data ◽  
Rate Of Return ◽  
Series Data ◽  
Financial Assets ◽  
Household Savings ◽  
Real Rate ◽  
Current Income ◽  
Household Saving ◽  
Income Model

The paper tests some household savings hypotheses with time-series data for Pakistan over the 1950-51 - 1976-77 period. The permanent income model is found to give a much better explanation of the year-to- year variations in household saving than does the simple current income model. Among other findings is a highly significant correlation between ch;lI1ges in the real rate of return on financial assets and household saving.

scholarly journals Socio-economic Characteristics and Household Savings: An Analysis of the Households' Saving Behaviour in Pakistan

1992 ◽  
Vol 31 (1) ◽  
pp. 31-48 ◽  
Author(s):  
Nadeem A. Burney ◽  
Ashfaque H. Khan
Keyword(s):  
Economic Growth ◽  
Rural Households ◽  
Household Head ◽  
Ordinary Least Squares ◽  
Negative Influence ◽  
Resource Mobilization ◽  
Household Savings ◽  
General Belief ◽  
Savings Rate ◽  
Domestic Resource

Domestic resource mobilization is one of the key determinants of sustained economic growth. Pakistan's perfonnance with regard to domestic resource mobilization has been poor despite maintaining a respectable economic growth rate. Why is the savings rate so low in Pakistan? In this paper we analyse the household savings behaviour in Pakistan, using micro level data of the Household Income and Expenditure Survey (HIES) for the year 1984-85. Three different non-linear savings functions attributed to Keynes, Klein, and Landau are estimated separately for the urban and the rural households, using the Ordinary Least Squares (OLS) technique. It is found that the average income and saving of an urban household are considerably higher than those of overall Pakistan or a rural household. However, contrary to the general belief, it is found that the propensity to save of the rural households is much higher than that of their urban counterparts. The dependency ratio and the various categories of education are found to have a negative influence on household savings. No systematic relationship is found between savings and the employment status and occupation of the household head. It is found, however, that saving increases with age but tends to decline when the age crosses a certain limit - a finding consistent with the Life Cycle Hypothesis.

The Effect of Armed Conflict on Savings Rates: International Evidence from 1980 to 2015

2019 ◽  
Vol 25 (3) ◽  
Author(s):  
Alejandro Torres-Garcia ◽  
Martin Vanegas-Arias ◽  
Laura Builes-Aristizabal
Keyword(s):  
Economic Growth ◽  
Armed Conflict ◽  
Armed Conflicts ◽  
Growth Theory ◽  
Long Run ◽  
Intertemporal Preferences ◽  
Conflict Duration ◽  
Saving Rates ◽  
The Impact ◽  
Savings Rates

AbstractEconomic growth theory highlights the importance of saving rates to explain the long-run economic performance of economies. While economic theory has provided an analytical and empirical framework to understand the determinants of saving rates, one of the limitations is that it excludes from the analysis the potential effects of armed conflict and political instability, although it has been demonstrated that such situations can affect intertemporal preferences in terms of consumption and saving. Using a sample of 55 countries with/without conflict from 1980 to 2015, we analyze whether aggregate savings rates are negatively correlated with the existence, intensity, and duration of an armed conflict. The results indicate that countries that have suffered some type of conflict exhibit a saving rate 2.7% lower on average than the rate exhibited by countries that have not suffered such conflict. Additionally, if there is a high-intensity conflict, the saving rates decreases 2.5% more relative to countries that experience low-intensity conflict. Finally, we found a nonlinear relationship between saving rates and conflict duration, suggesting that the impact of conflict on savings decreases with time. These results extend the literature on the effects of armed conflicts on the long-run economic growth.

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