Browsing by Subject "H31"

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  • Feng, Jin; He, Lixin; Sato, Hiroshi (2009)
    BOFIT Discussion Papers 2/2009
    Published in Journal of Comparative Economics, Vol. 39, Iss.4, Dec. 2011, pp. 470-485.
    We relate household saving to pension reform, to explain the high household saving rates in urban China from a new perspective. We use the exogenous - policy induced - variation in pension wealth to explicitly estimate the impact of pension wealth on household saving, and obtain a significant offset effect of pension wealth on household saving. Our estimations show that pension reform boosted the household saving rate in 1999 by about 6 percentage points for cohort aged 25-29 and by about 3 percentage points for cohort aged 50-59. Our results also indicate that declining pension wealth reduces expenditure on education and health more than on other consumption items. Keywords: pensions, pension reform, household savings rate, China JEL: H31, H55, P35