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)
Chamon, Marcos D., and Eswar S. Prasad.
"Why Are Saving Rates of Urban Households in China Rising?"
American Economic Journal: Macroeconomics,
Macroeconomics: Consumption; Saving; Wealth
Microeconomic Analyses of Economic Development
Economic Development: Regional, Urban, and Rural Analyses; Transportation
Socialist Systems and Transitional Economies: Urban, Rural, and Regional Economics
Socialist Institutions and Their Transitions: Consumer Economics; Health; Education and Training: Welfare, Income, Wealth, and Poverty