Abstract
This article uses the China Household Financial Survey (CHFS) to examine the savings behavior of Chinese Households. Using a standard cross-sectional empirical approach to modeling permanent and transitory income, we show that one way of explaining the relative high savings rate in China is by recognizing that in fast growing economies, individuals may have higher transitory income from which they save a large proportion. The estimation also contains a range of household specific variables which can be used to understand the impact of socio-economic characteristics such as urban vs rural dwelling, age, and the educational level.
Original language | English |
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Pages (from-to) | 1775-1796 |
Number of pages | 22 |
Journal | Emerging Markets Finance and Trade |
Volume | 52 |
Issue number | 8 |
DOIs | |
Publication status | Published - 26 Jul 2016 |
Keywords
- household saving
- China
- permanent income
- cross-sectional data