Why are Saving Rates of Urban Households in China Rising?
---- Acknowledgements ----
We thank China's National Bureau of Statistics and, in particular, Chen Xiaolong, Yu Qiumei, Wang Xiaoqing, and Cheng Xuebin for their collaboration on this project. This paper has benefited from the comments of Olivier Blanchard, Chris Carroll, Steve Davis, Angus Deaton, Karen Dynan, Charles Horioka, Marcelo Medeiros, Chang-Tai Hsieh, Nicholas Lardy, Junmin Wan, two anonymous referees, numerous IMF colleagues, and seminar participants at the IMF, the NBER China Workshop, the University of California at Berkeley, the NBER Summer Institute, Hong Kong University, and Hong Kong University of Science and Technology. The views expressed in this paper are those of the authors and do not necessarily represent those of the IMF or the National Bureau of Economic Research, nor IMF policy. A revised version of this paper is forthcoming in American Economic Journal: Macroeconomics.