Demographics and Aggregate Household Saving in Japan, China, and India

33 Pages Posted: 14 Sep 2015

See all articles by Chadwick Curtis

Chadwick Curtis

University of Richmond - E. Claiborne Robins School of Business - Economics

Steven Lugauer

University of Kentucky - Department of Economics

Nelson C. Mark

University of Notre Dame - Department of Economics and Econometrics; National Bureau of Economic Research (NBER)

Date Written: September 2015

Abstract

We present a model of household life-cycle saving decisions in order to quantify the impact of demographic changes on aggregate household saving rates in Japan, China, and India. The observed age distributions help explain the contrasting saving patterns over time across the three countries. In the model simulations, the growing number of retirees suppresses Japanese saving rates, while decreasing family size increases saving for both China and India. Projecting forward, the model predicts lower household saving rates in Japan and China.

Suggested Citation

Curtis, Chadwick and Lugauer, Steven and Mark, Nelson Chung, Demographics and Aggregate Household Saving in Japan, China, and India (September 2015). NBER Working Paper No. w21555. Available at SSRN: https://ssrn.com/abstract=2660014

Chadwick Curtis (Contact Author)

University of Richmond - E. Claiborne Robins School of Business - Economics ( email )

United States

Steven Lugauer

University of Kentucky - Department of Economics ( email )

Lexington, KY 40506
United States

Nelson Chung Mark

University of Notre Dame - Department of Economics and Econometrics ( email )

442 Flanner
Notre Dame, IN 46556
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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