A Theory of the Competitive Saving Motive

Qingyuan Du and Shang-Jin Wei

No 252013, Working Papers from Hong Kong Institute for Monetary Research

Abstract: Motivated by recent empirical work, this paper formalizes a theory of competitive savings - an arms race in household savings for mating competition that is made more fierce by an increase in the male-to-female ratio in the pre-marital cohort. Relative to the empirical work, the theory can clarify a number of important questions: What determines the strength of the savings response by males (or households with a son)? Can women (or households with a daughter) dis-save? What are the conditions under which aggregate savings would go up in response to a higher sex ratio? This theory can potentially help to understand the savings patterns in China, India, Vietnam, Singapore, Hong Kong, and other economies that have experienced a dramatic increase in the pre-marital sex ratio.

Keywords: Surplus Men; Savings Race; Trade Surplus; Global Imbalances (search for similar items in EconPapers)
JEL-codes: F3 F4 J1 J7 (search for similar items in EconPapers)
Pages: 41 pages
Date: 2013-12
New Economics Papers: this item is included in nep-sea
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (36)

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Related works:
Journal Article: A theory of the competitive saving motive (2013)
Working Paper: A Theory of the Competitive Saving Motive (2013)
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