IDEAS home Printed from https://ideas.repec.org/p/jmp/jm2014/pni317.html
   My bibliography  Save this paper

A Model of Competitive Saving Over the Life-cycle, and its Implications for the Saving Rate Puzzle in China

Author

Listed:
  • Guangyu Nie

Abstract

This paper develops a life-cycle model with multi-dimensional matching in a frictionless marriage market where a single man's rank is determined by his age and wealth relative to others'. Using stable matching patterns, we analyze how people's marital age and saving behavior jointly respond to marriage market shocks. In particular, with wealth as a status good for mating competition, an otherwise standard age profile of savings exhibits an unusual pattern with younger households having relatively high saving rates compared to the middle-aged. This result is consistent with recent empirical findings from China. In addition, both the age gap between spouses and the aggregate saving rate rise when the sex ratio increases. Neglecting the response in marital ages will lead to an overstatement of the effect of the sex ratio imbalance on the increase of the aggregate saving rate.

Suggested Citation

  • Guangyu Nie, 2014. "A Model of Competitive Saving Over the Life-cycle, and its Implications for the Saving Rate Puzzle in China," 2014 Papers pni317, Job Market Papers.
    • Handle: RePEc:jmp:jm2014:pni317
    as

    Download full text from publisher

    File URL: https://ideas.repec.org/jmp/2014/pni317.pdf
    Download Restriction: no
    ---><---

    More about this item

    JEL classification:

    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • D10 - Microeconomics - - Household Behavior - - - General
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:jmp:jm2014:pni317. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: RePEc Team (email available below). General contact details of provider: http://ideas.repec.org/jmp.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.