The Chinese Saving Rate: Long-Term Care Risks, Family Insurance, and Demographics

Ayse Imrohoroglu and Kai Zhao

No 2017-17, Working papers from University of Connecticut, Department of Economics

Abstract: In this paper, we show that a general equilibrium model that properly captures the risks in old age, the role of family insurance, changes in demographics, and the productivity growth rate is capable of generating changes in the national saving rate in China that mimic the data well. Our findings suggest that the combination of the risks faced by the elderly and the deterioration of family insurance due to the one-child policy may account for approximately half of the increase in the saving rate between 1980 and 2010. Changes in the productivity growth rate account for the fluctuations in the saving rate during this period.

Pages: 55 pages
Date: 2017-08
New Economics Papers: this item is included in nep-age, nep-cna, nep-dge, nep-hea, nep-ias and nep-tra
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Citations: View citations in EconPapers (10)

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Journal Article: The chinese saving rate: Long-term care risks, family insurance, and demographics (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:uct:uconnp:2017-17

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