Chinese Urban Residents' Savings Study

Household savings plays an important role for national economy, this article begins with the retrospective of western classic consumption and savings theory which includes the excessive savings theory, individual savings theory, and the savings theory based on comparative incomes and the savings theory based on absolute incomes. Professionals have done a lot of researches on household savings. This article is based on the reality in china, aims at building a household savings model of residents in the cities. After the vast work of collecting all the related materials and data from all the big and medium-sized cities in china and subtracting the cities with incomplete data, 20 cities have been chosen as the databank. Based on the studies of western classic savings theory and the access analysis of related data, the factors of the model and the model was confirmed. The panel data from 20cities was introduced into this model, and being regressed, estimated and examined. The final model was established afterwards and at the meantime the conclusions which includes: the positive relation between the disposable income and the savings; the positive relation between the real interest rate and the savings; the negative relation between financial investment and the savings; the positive relation between average residence area and the savings etc. Based on all these analysis, the writer summed up some essential conclusions on policy making, including: improve the distribution system of individual income, increase residents' income, narrow down the income gap; complete the social welfare system to convert more savings into investment and consumption; develop financial markets and devising more products for investments; perfect banking industries to make it more efficient and reduce the risks of savings.