House Prices and Household Saving Rate: Evidence from China

38 Pages Posted: 6 May 2013

See all articles by Binzhen Wu

Binzhen Wu

Tsinghua University - School of Economics & Management

Jieyu Xie

Tsinghua University - School of Economics & Management

Date Written: April 5, 2013

Abstract

In the last decade, China’s house prices have skyrocketed along with its continually rising household saving rate. Can rising house prices be an important contributor to the increase in household saving rate? Using data from an urban household survey in China, we find that, on average, local house prices do not significantly change household saving rate, regardless of whether housing expenditure is classified as current consumption. When house prices increase, however, households with single male adults, house renters, and owners of homes with below-average value show a significant increase in saving rate. By contrast, households with single female adults and owners of homes with above-average value do not show changes in saving rate.

Keywords: House prices, Household saving rate, Household consumption, Durable goods, China

JEL Classification: E2, O16, R21

Suggested Citation

Wu, Binzhen and Xie, Jieyu, House Prices and Household Saving Rate: Evidence from China (April 5, 2013). Available at SSRN: https://ssrn.com/abstract=2261043 or http://dx.doi.org/10.2139/ssrn.2261043

Binzhen Wu (Contact Author)

Tsinghua University - School of Economics & Management ( email )

School of Economics and Management
Tsinghua University
Beijing, Beijing 100084
China

Jieyu Xie

Tsinghua University - School of Economics & Management ( email )

Beijing, 100084
China

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
265
Abstract Views
1,246
rank
145,920
PlumX Metrics