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Article: Social Norms and Household Savings Rates in China
Title | Social Norms and Household Savings Rates in China |
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Authors | |
Keywords | China Confucianism D64 G11 G23 Household savings rate Social norms |
Issue Date | 2019 |
Publisher | Oxford University Press. The Journal's web site is located at http://rof.oxfordjournals.org/ |
Citation | Review of Finance, 2019, v. 23 n. 5, p. 961-991 How to Cite? |
Abstract | We study the effects of Confucian social norms on savings rates in China. In our simple two-period model, parents have the option to invest in either a risk-free asset or their children’s human capital. We assume that the filial piety norms and thus the enforcement mechanisms for supporting old-age parents differ across regions. Consequently, the probability of children’s non-performance of their repayment obligations to parents and the returns parents can expect from investing in their children vary. We test the model predictions using data from the China Household Finance Survey (CHFS). We find that stronger Confucian social norms reduce the gap in the savings rate between families with sons and with daughters. Modelling default by children as a function of the prevailing social norms gives us the flexibility to study the impacts of declining Confucian influence on consumption–savings trends in China. |
Persistent Identifier | http://hdl.handle.net/10722/263820 |
ISSN | 2023 Impact Factor: 5.6 2023 SCImago Journal Rankings: 7.769 |
ISI Accession Number ID |
DC Field | Value | Language |
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dc.contributor.author | Chen, Y | - |
dc.contributor.author | Chen, Z | - |
dc.contributor.author | He, S | - |
dc.date.accessioned | 2018-10-22T07:45:00Z | - |
dc.date.available | 2018-10-22T07:45:00Z | - |
dc.date.issued | 2019 | - |
dc.identifier.citation | Review of Finance, 2019, v. 23 n. 5, p. 961-991 | - |
dc.identifier.issn | 1572-3097 | - |
dc.identifier.uri | http://hdl.handle.net/10722/263820 | - |
dc.description.abstract | We study the effects of Confucian social norms on savings rates in China. In our simple two-period model, parents have the option to invest in either a risk-free asset or their children’s human capital. We assume that the filial piety norms and thus the enforcement mechanisms for supporting old-age parents differ across regions. Consequently, the probability of children’s non-performance of their repayment obligations to parents and the returns parents can expect from investing in their children vary. We test the model predictions using data from the China Household Finance Survey (CHFS). We find that stronger Confucian social norms reduce the gap in the savings rate between families with sons and with daughters. Modelling default by children as a function of the prevailing social norms gives us the flexibility to study the impacts of declining Confucian influence on consumption–savings trends in China. | - |
dc.language | eng | - |
dc.publisher | Oxford University Press. The Journal's web site is located at http://rof.oxfordjournals.org/ | - |
dc.relation.ispartof | Review of Finance | - |
dc.rights | Post-print: This is a pre-copy-editing, author-produced PDF of an article accepted for publication in [Review of Finance] following peer review. The definitive publisher-authenticated version [Review of Finance, 2019, v. 23 n. 5, p. 961-991] is available online at: [http://dx.doi.org/10.1093/rof/rfy029]. | - |
dc.subject | China | - |
dc.subject | Confucianism | - |
dc.subject | D64 | - |
dc.subject | G11 | - |
dc.subject | G23 | - |
dc.subject | Household savings rate | - |
dc.subject | Social norms | - |
dc.title | Social Norms and Household Savings Rates in China | - |
dc.type | Article | - |
dc.identifier.email | Chen, Z: zchen99@hku.hk | - |
dc.identifier.authority | Chen, Z=rp02041 | - |
dc.description.nature | postprint | - |
dc.identifier.doi | 10.1093/rof/rfy029 | - |
dc.identifier.scopus | eid_2-s2.0-85074073913 | - |
dc.identifier.hkuros | 294695 | - |
dc.identifier.volume | 23 | - |
dc.identifier.issue | 5 | - |
dc.identifier.spage | 961 | - |
dc.identifier.epage | 991 | - |
dc.identifier.isi | WOS:000493370400004 | - |
dc.publisher.place | United Kingdom | - |
dc.identifier.issnl | 1572-3097 | - |