The pattern of household savings during a hyperinflation: The case of urban China in the late 1980s

Rolf Aaberge, Yu Zhu

    Research output: Contribution to journalArticle

    10 Citations (Scopus)

    Abstract

    This paper presents evidence on household savings in urban regions of the Chinese provinces Sichuan and Liaoning, based on data from the State Statistical Bureau's Urban Household Survey for the late 1980s. In this period the Chinese economy was subject to extensive reforms that resulted in rapid economic growth followed by extremely high inflation. The high inflation rates gave the households strong motives to switch from financial savings to purchase of consumer durables, which also appear to be consistent with the structure of the observed data. By providing empirical evidence on the relative importance of savings by lower, middle and upper income groups for single-child families and for all households, this study also discusses whether savings decisions depend on the level of household income. Single-child families are focused, not only because of their growing dominance in the current Chinese society, but also to control for the effect of demographic disparities.

    Original languageEnglish
    Pages (from-to)181-202
    Number of pages22
    JournalReview of Income and Wealth
    Volume47
    Issue number2
    DOIs
    Publication statusPublished - Jun 2001

    Fingerprint

    Savings
    Household saving
    Hyperinflation
    Urban China
    High inflation
    Household
    Purchase
    Demographics
    Household survey
    Consumer durables
    Chinese economy
    Economic growth
    Inflation rate
    Empirical evidence
    Relative importance
    Household income
    Income

    Cite this

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    abstract = "This paper presents evidence on household savings in urban regions of the Chinese provinces Sichuan and Liaoning, based on data from the State Statistical Bureau's Urban Household Survey for the late 1980s. In this period the Chinese economy was subject to extensive reforms that resulted in rapid economic growth followed by extremely high inflation. The high inflation rates gave the households strong motives to switch from financial savings to purchase of consumer durables, which also appear to be consistent with the structure of the observed data. By providing empirical evidence on the relative importance of savings by lower, middle and upper income groups for single-child families and for all households, this study also discusses whether savings decisions depend on the level of household income. Single-child families are focused, not only because of their growing dominance in the current Chinese society, but also to control for the effect of demographic disparities.",
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    The pattern of household savings during a hyperinflation : The case of urban China in the late 1980s. / Aaberge, Rolf; Zhu, Yu.

    In: Review of Income and Wealth, Vol. 47, No. 2, 06.2001, p. 181-202.

    Research output: Contribution to journalArticle

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