Hidden Bibliographic Details
| Other authors / contributors: | International Monetary Fund. Asia and Pacific Department, issuing body.
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| ISBN: | 1283555085
9781283555081
9781463936945
146393694X
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| Notes: | At head of title: Asia and Pacific Department.
Title from PDF title page (IMF, viewed Jan. 11, 2012).
"September 2011."
Includes bibliographical references (pages 26-28).
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| Summary: | This paper studies a panel of China's provinces over the period 1996-2009 during which urban household saving rates increased from 19 percent of disposable income to 30 percent. It finds that the increase in urban saving rates is negatively associated with the decline in real interest rates over this period. This negative association suggests that Chinese households save with a target level of saving in mind. When the return to saving declines (increases), it becomes more difficult (easier) to meet a target and households increase (lower) their saving out of current disposable income to compensate. The results are robust across specifications and to the inclusion of additional variables. A main policy implication is that an increase in real deposit rates may help lower household saving and boost domestic consumption.
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| Other form: | Print version: Nabar, Malhar. Targets, Interest Rates, and Household Saving in Urban China. Washington : International Monetary Fund, ©2011 9781463904258
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