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An investigation of whether pensions increase consumption: Evidence from family portfolios

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  • xinbang, Cao
  • Wang, Fei
  • Wang, Yang
  • Wang, Youxin

Abstract

This article makes an empirical analysis on the impact of pension on residents' consumption from a micro point of view.It can be seen that pension has a great impact on residents' consumption, which is consistent with Keynesian consumption function theory. The pension system plays a great role in guaranteeing the basic life of residents after retirement. We concludes that there is an obvious positive correlation between the basic social pension and residents' consumption level.

Suggested Citation

  • xinbang, Cao & Wang, Fei & Wang, Yang & Wang, Youxin, 2022. "An investigation of whether pensions increase consumption: Evidence from family portfolios," Finance Research Letters, Elsevier, vol. 47(PA).
    • Handle: RePEc:eee:finlet:v:47:y:2022:i:pa:s1544612321005390
    DOI: 10.1016/j.frl.2021.102591
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    References listed on IDEAS

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    1. Nicholas Barr & Peter Diamond, 2006. "The Economics of Pensions," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 22(1), pages 15-39, Spring.
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    5. Jaafar, Roslan & Daly, Kevin James & Mishra, Anil V., 2019. "Challenges facing Malaysia pension scheme in an era of ageing population," Finance Research Letters, Elsevier, vol. 30(C), pages 334-340.
    6. Chakraborty, Shankha, 2004. "Endogenous lifetime and economic growth," Journal of Economic Theory, Elsevier, vol. 116(1), pages 119-137, May.
    7. Feldstein, Martin S, 1974. "Social Security, Induced Retirement, and Aggregate Capital Accumulation," Journal of Political Economy, University of Chicago Press, vol. 82(5), pages 905-926, Sept./Oct.
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