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

Santaeulàlia-Llopis, Raül ; Zheng, Yu
Authors registered in the RePEc Author Service: Raul Santaeulalia-Llopis and Yu Zheng

No ECO2016/13, Economics Working Papers from European University Institute

Abstract: The welfare gains of economic growth hinge on the ability of households to insure consumption against the risks associated with growth. We exploit a novel and unique opportunity to study this question using China, an economy that has witnessed enormous and sustained growth and for which we build a long panel of household-level consumption and income. We find that consumption insurance deteriorates along the growth process with a transmission of permanent income shocks to consumption that triples from 1989 to 2009. The loss of consumption insurance has implications for the welfare assessment of economic growth across time and across space.

Keywords: Income Risk; Consumption Insurance; Growth; Welfare; China (search for similar items in EconPapers)
JEL-codes: D1 O4 (search for similar items in EconPapers)
Date: 2016
New Economics Papers: this item is included in nep-cna, nep-ias and nep-tra
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Citations: View citations in EconPapers (8) Track citations by RSS feed

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Related works:
Journal Article: The Price of Growth: Consumption Insurance in China 1989–2009 (2018) Downloads
Working Paper: The Price of Growth: Consumption Insurance in China 1989-2009 (2017) Downloads
Working Paper: The Price of Growth: Consumption Insurance in China 1989-2009 (2016) Downloads
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