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Wealthy Hand‐to‐Mouth Households in China
Author(s) -
Cui Zhen,
Feng Yalan
Publication year - 2017
Publication title -
asian economic journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.345
H-Index - 28
eISSN - 1467-8381
pISSN - 1351-3958
DOI - 10.1111/asej.12123
Subject(s) - china , economics , cash , consumption (sociology) , endogeneity , household income , demographic economics , finance , geography , econometrics , social science , archaeology , sociology
The wealthy hand‐to‐mouth are households who are poor in liquid wealth (e.g. cash and checking accounts) and rich in illiquid wealth (e.g. housing and retirement accounts), while the poor hand‐to‐mouth are poor in both liquid and illiquid wealth. Data from the China Household Finance Survey reveal the following facts about the country’s wealthy hand‐to‐mouth. First, they represent the majority of the hand‐to‐mouth households in China. Second, they have different wealth portfolios and demographic features from the poor hand‐to‐mouth. Finally, they have larger consumption responses to income fluctuations than non‐hand‐to‐mouth households, after controlling for endogeneity, income, hand‐to‐mouth status and other household characteristics.