Demographic patterns and household saving in China

Chadwick C. Curtis, Steven Lugauer, Nelson C. Mark

Research output: Contribution to journalArticlepeer-review

78 Scopus citations

Abstract

This paper studies how demographic variation affects the aggregate household saving rate. We focus on China because it is experiencing an historic demographic transition and has had a massive increase in household saving. We conduct a quantitative investigation using a structural overlapping generations model that incorporates parental care through support for dependent children and financial transfers to retirees. The saving decisions in the parameterized model mimic many of the features observed in the Chinese household saving rate time series from 1955 to 2009. Demographic change alone accounts for over half of the saving rate increase. (JEL D12, D91, E21, J11, O12, O16, P36).

Original languageEnglish
Pages (from-to)58-94
Number of pages37
JournalAmerican Economic Journal: Macroeconomics
Volume7
Issue number2
DOIs
StatePublished - 2015

ASJC Scopus subject areas

  • General Economics, Econometrics and Finance

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