Why are Saving Rates of Urban Households in China Rising? Export

@article{citeulike:3801823, abstract = {From 1995 to 2005, the average urban household saving rate in China rose by 7 percentage points, to about one quarter of disposable income. We use household-level data to explain why households are postponing consumption despite rapid income growth. Tracing cohorts over time indicates a virtual absence of consumption smoothing over the life cycle. Saving rates have increased across all demographic groups although the age profile of savings has an unusual pattern in recent years, with younger and older households having relatively high saving 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, as reflected in constraints on borrowing against future income and low returns on financial assets.}, author = {Chamon, Marcos and Prasad, Eswar}, citeulike-article-id = {3801823}, citeulike-linkout-0 = {http://papers.nber.org/papers/w14546}, journal = {NBER Working Paper number 14546}, keywords = {china, saving}, month = {December}, posted-at = {2008-12-17 16:13:07}, priority = {2}, title = {Why are Saving Rates of Urban Households in China Rising?}, url = {http://papers.nber.org/papers/w14546}, year = {2008} }

TY - JOUR ID - citeulike:3801823 L3 - citeulike-article-id:3801823 N2 - From 1995 to 2005, the average urban household saving rate in China rose by 7 percentage points, to about one quarter of disposable income. We use household-level data to explain why households are postponing consumption despite rapid income growth. Tracing cohorts over time indicates a virtual absence of consumption smoothing over the life cycle. Saving rates have increased across all demographic groups although the age profile of savings has an unusual pattern in recent years, with younger and older households having relatively high saving 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, as reflected in constraints on borrowing against future income and low returns on financial assets. JF - NBER Working Paper number 14546 TI - Why are Saving Rates of Urban Households in China Rising? KW - china KW - saving AU - Chamon, Marcos AU - Prasad, Eswar PY - 2008/12// UR - http://papers.nber.org/papers/w14546 ER -