The Pattern of Household Savings during a Hyperinflation The Case of Urban China in the Late 1980s
AbstractThis paper presents evidence on household savings in urban regions of the Chinese provinces Sichuan and Liaoning based on data from the State Statistical Bureau's Urban Household Survey for the late 1980s. In this period the Chinese economy was subject to extensive reforms that resulted in rapid economic growth followed by extremely high inflation rates in 1988 and 1989. The high inflation rates gave the households strong motives to switch from financial savings to purchase of consumer durables, which also appear to be consistent with the structure of the observed data. By providing empirical evidence on the relative importance of savings by lower, middle and upper income groups for single-child families and for all households, this study also demonstrates that the savings decisions depend heavily on the level of household income. Single-child families are focused, not only because of its growing dominance in the current Chinese society, but also to control for the effect of demographic disparities.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Research Department of Statistics Norway in its series Discussion Papers with number 217.
Date of creation: Mar 1998
Date of revision:
Income; savings; consumer durables.;
Other versions of this item:
- Aaberge, Rolf & Zhu, Yu, 2001. "The Pattern of Household Savings during a Hyperinflation: The Case of Urban China in the Late 1980s," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 47(2), pages 181-202, June.
- D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
- D91 - Microeconomics - - Intertemporal Choice - - - Intertemporal Household Choice; Life Cycle Models and Saving
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Angus Deaton & Christina H. Paxson, 1993.
"Saving, Growth, and Aging in Taiwan,"
NBER Working Papers
4330, National Bureau of Economic Research, Inc.
- Pudney, Stephen, 1993. "Income and Wealth Inequality and the Life Cycle: A Non-parametric Analysis for China," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 8(3), pages 249-76, July-Sept.
- Cole, Harold L & Mailath, George J & Postlewaite, Andrew, 1992. "Social Norms, Savings Behavior, and Growth," Journal of Political Economy, University of Chicago Press, vol. 100(6), pages 1092-1125, December.
- Yu Zhu & Zhongmin Wu & Meiyan Wang & Yang Du & Fang Cai, 2009.
"Do Migrants Really Save More? Understanding the Impact of Remittances on Savings in Rural China,"
Studies in Economics
0923, Department of Economics, University of Kent.
- Yu Zhu & Zhongmin Wu & Meiyan Wang & Yang Du & Fang Cai, 2011. "Do Migrants Really Save More? Understanding the Impact of Remittances on Savings in Rural China," Journal of Development Studies, Taylor & Francis Journals, vol. 48(5), pages 654-672, June.
- Meng, Xin, 2003. "Unemployment, consumption smoothing, and precautionary saving in urban China," Journal of Comparative Economics, Elsevier, vol. 31(3), pages 465-485, September.
- Ismail, Aisha & Rashid, Kashif, 2013. "Determinants of household saving: Cointegrated evidence from Pakistan (1975–2011)," Economic Modelling, Elsevier, vol. 32(C), pages 524-531.
- Zhu, Yu, 2002. "Latent total consumption expenditure, unobservable individual preferences and panel data," Economic Modelling, Elsevier, vol. 19(2), pages 277-293, March.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (J Bruusgaard).
If references are entirely missing, you can add them using this form.