Public Expenditures on Social Programs and Household Consumption in China

Released on by Mr.David Coady
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  • Public Expenditures on Social Programs and Household Consumption in China Book Detail

  • Author : Mr.David Coady
  • Release Date : 2010-03-01
  • Publisher : International Monetary Fund
  • Genre : Business & Economics
  • Pages : 29
  • ISBN 13 : 1451982135
  • File Size : 68,68 MB
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Public Expenditures on Social Programs and Household Consumption in China by Mr.David Coady PDF Summary

Book Description: This paper shows that increasing government social expenditures can make a substantive contribution to increasing household consumption in China. The paper first undertakes an empirical study of the relationship between the savings rate and social expenditures for a panel of OECD countries and provides illustrative estimates of their implications for China. It then applies a generational accounting framework to Chinese household income survey data. This analysis suggests that a sustained 1 percent of GDP increase in public expenditures, distributed equally across education, health, and pensions, would result in a permanent increase the household consumption ratio of 11⁄4 percentage points of GDP.

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