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An investigation of whether pensions increase consumption: Evidence from family portfolios

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  • xinbang, Cao
  • Wang, Fei
  • Wang, Yang
  • Wang, Youxin

Abstract

This article makes an empirical analysis on the impact of pension on residents' consumption from a micro point of view.It can be seen that pension has a great impact on residents' consumption, which is consistent with Keynesian consumption function theory. The pension system plays a great role in guaranteeing the basic life of residents after retirement. We concludes that there is an obvious positive correlation between the basic social pension and residents' consumption level.

Suggested Citation

  • xinbang, Cao & Wang, Fei & Wang, Yang & Wang, Youxin, 2022. "An investigation of whether pensions increase consumption: Evidence from family portfolios," Finance Research Letters, Elsevier, vol. 47(PA).
    • Handle: RePEc:eee:finlet:v:47:y:2022:i:pa:s1544612321005390
    DOI: 10.1016/j.frl.2021.102591
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    References listed on IDEAS

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    1. Nicholas Barr & Peter Diamond, 2006. "The Economics of Pensions," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 22(1), pages 15-39, Spring.
    2. Charles Yuji Horioka & Junmin Wan, 2007. "The Determinants of Household Saving in China: A Dynamic Panel Analysis of Provincial Data," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 39(8), pages 2077-2096, December.
    3. David Blake, 2004. "The impact of wealth on consumption and retirement behaviour in the UK," Applied Financial Economics, Taylor & Francis Journals, vol. 14(8), pages 555-576.
    4. Heinrich Hock & David Weil, 2012. "On the dynamics of the age structure, dependency, and consumption," Journal of Population Economics, Springer;European Society for Population Economics, vol. 25(3), pages 1019-1043, July.
    5. Jaafar, Roslan & Daly, Kevin James & Mishra, Anil V., 2019. "Challenges facing Malaysia pension scheme in an era of ageing population," Finance Research Letters, Elsevier, vol. 30(C), pages 334-340.
    6. Chakraborty, Shankha, 2004. "Endogenous lifetime and economic growth," Journal of Economic Theory, Elsevier, vol. 116(1), pages 119-137, May.
    7. Feldstein, Martin S, 1974. "Social Security, Induced Retirement, and Aggregate Capital Accumulation," Journal of Political Economy, University of Chicago Press, vol. 82(5), pages 905-926, Sept./Oct.
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    Cited by:

    1. Li, Jingrong & Mi, Xinyu & Zhang, Chenlei & Qin, Yanran, 2024. "Social pension insurance and household risky asset investment: Evidence from China," The Quarterly Review of Economics and Finance, Elsevier, vol. 95(C), pages 219-233.

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