The Effects of Income Risks on Durables Consumption in China: An Empirical Examination
Xiaoyan, Fan; Zhigang, Yuan; & Guanghua, Wan. (2007). The Effects of Income Risks on Durables Consumption in China: An Empirical Examination. Jingji Yanjiu/Economic Research Journal, 42(4), 124-136.
Xiaoyan, Fan; Zhigang, Yuan; & Guanghua, Wan. (2007). The Effects of Income Risks on Durables Consumption in China: An Empirical Examination. Jingji Yanjiu/Economic Research Journal, 42(4), 124-136.
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This paper analyzes the effect of income risks on household durables consumption in China. Some radical reforms implemented in late 1990s have induced millions of layoffs and sharply increased people's income uncertainty in China. With the CHNS micro-database and (S,s) model, it is found that the reform-induced income risk has significantly depressed household durables consumption, and the rural households are more vulnerable to income risks compared with their urban counterparts. This paper confirms the theoretical predictions of (S,s) model and provides some policy implications for future reforms.
JOUR
Xiaoyan, Fan
Zhigang, Yuan
Guanghua, Wan
2007
Jingji Yanjiu/Economic Research Journal
42
4
124-136
05779154
558