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A Theory of the Competitive Saving Motive

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  • Qingyuan Du
  • Shang-Jin Wei

Abstract

Motivated by recent empirical work, this paper formalizes a theory of competitive savings - an arms race in household savings for mating competition that is made more fierce by an increase in the male-to-female ratio in the pre-marital cohort. Relative to the empirical work, the theory can clarify a number of important questions: What determines the strength of the savings response by males (or households with a son)? Can women (or households with a daughter) dis-save? What are the conditions under which aggregate savings would go up in response to a higher sex ratio? This theory can potentially help to understand the savings patterns in China, India, Vietnam, Singapore, Hong Kong, and other economies that have experienced a dramatic increase in the pre-marital sex ratio.

Suggested Citation

  • Qingyuan Du & Shang-Jin Wei, 2013. "A Theory of the Competitive Saving Motive," NBER Working Papers 18911, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:18911
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    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Las mujeres desaparecidas
      by Luis Abenza in Politikon on 2014-11-25 14:01:10
    2. Sex and the Chinese Economy
      by Shang-Jin Wei in Project Syndicate on 2021-05-18 12:50:13

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    More about this item

    JEL classification:

    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment
    • F3 - International Economics - - International Finance
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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