Universitatea din Bucuresti, Facultatea de Administratie si Afaceri

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ISSN-L 2069 - 5756
ISSN 2285 - 0430

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Address

Regina Elisabeta Avenue
No 4 - 12, Sector 1,
Bucharest, Romania

Phones

Phone: +4 021 310 49 20
Fax: +4 021 310 49 20

Editor in chief

Professor Fabio Musso
Departament of Economics, Society, Politics - DESP
University "Carlo Bo", Urbino, Italy

Contacts

ijeb@faa.unibuc.ro
fabio.musso@uniurb.it

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Indexed by : EBSCO-CEEAS | RePEc | Genamic Journal Seek database | Ulrich's Periodicals Directory | nowledge Base Social Sciences Eastern Europe

Will High Household Saving in China Persist? An Application of the Conspicuous Consumption Theory

 

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  1. Authors:
      • Xiaofen Chen
      • Lin Zhang

  2. Keywords: Conspicuous consumption; household saving Chinese economy; cultural changes; international openness; urbanization; population mobility

  3. Abstract:
    Expanding from Veblen’s conspicuous consumption theory, this paper provides new explanations on China’s household saving behavior. Using provincial level data, it finds evidence that urbanization, increased mobility of the population, and a greater degree of openness all depress household saving, likely through higher conspicuous consumption. This result is robust with different estimators and specifications. Among the conventional explanatory variables, the paper finds support for the permanent income theory, but little evidence for the life cycle theory.

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