The Price of Growth: Consumption Insurance in China 1989-2009

Yu Zheng and Raül Santaeulà lia-Llopis
Authors registered in the RePEc Author Service: Raul Santaeulalia-Llopis ()

No 995, Working Papers from Barcelona School of Economics

Abstract: We exploit a novel and unique opportunity to document the transmission of income risk to consumption in a growing economy. Our laboratory is China, an economy that has witnessed enormous and sustained growth. We build a long panel of household-level consumption and income data. We find that consumption insurance deteriorates along the growth process with a transmission of permanent income shocks to consumption that at least triples from 1989 to 2009. Although preliminary, our welfare analysis suggests that the loss of consumption insurance can have first-order implications for the welfare assessment of economic growth.

Keywords: welfare; economic growth; income risk; consumption insurance; China (search for similar items in EconPapers)
JEL-codes: D12 E21 O11 O12 (search for similar items in EconPapers)
Date: 2017-10
New Economics Papers: this item is included in nep-cna, nep-ias, nep-mac and nep-tra
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Citations: View citations in EconPapers (3)

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Related works:
Journal Article: The Price of Growth: Consumption Insurance in China 1989–2009 (2018)
Working Paper: The Price of Growth: Consumption Insurance in China 1989-2009 (2016)
Working Paper: The Price of Growth: Consumption Insurance in China 1989-2009 (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:bge:wpaper:995

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