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Household Saving in C hina: The K eynesian Hypothesis, Life‐Cycle Hypothesis, and Precautionary Saving Theory
Author(s) -
Liu Shenglong,
Hu Angang
Publication year - 2013
Publication title -
the developing economies
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.305
H-Index - 30
eISSN - 1746-1049
pISSN - 0012-1533
DOI - 10.1111/deve.12026
Subject(s) - life cycle hypothesis , economics , life expectancy , expectancy theory , life saving , econometrics , keynesian economics , medicine , environmental health , population , management , medical emergency
We test the explanatory powers of K eynesian theory, the life‐cycle hypothesis, and the precautionary saving theory on household saving in C hina, based on data from 1990 to 2009 from 31 provinces and autonomous regions. The results show that the precautionary saving motivation explains household saving better than K eynesian theory. The study results also highlight the impact of life expectancy on C hina's household saving.