Why Are Saving Rates of Urban Households in China Rising?

Marcos Chamon () and Eswar Prasad

American Economic Journal: Macroeconomics, 2010, vol. 2, issue 1, 93-130

Abstract: 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)

JEL-codes: D14 E21 O12 O18 P25 P36 (search for similar items in EconPapers)
Date: 2010
Note: DOI: 10.1257/mac.2.1.93
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Citations: View citations in EconPapers (324)

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Related works:
Working Paper: Why are Saving Rates of Urban Households in China Rising? (2008)
Working Paper: Why are Saving Rates of Urban Households in China Rising? (2008)
Working Paper: Why Are Saving Rates of Urban Households in China Rising? (2007)
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