The Household Consumption And Saving Behavior Of The Rich Families In China

The consumption and saving behavior of China's households has a broad and deep research,consumption and saving behavior of the rural poor families also have more mature works,but the study of consumption and saving behavior of China's rich family is very poor,the wealthy families' consumption and saving behavior does not receive much attention and study.Based on the China Family Panel Studies(CFPS)data in 2014 year,I empirically analyse the different income groups' saving behavior with Dynan et al(2004)two stage method.What's more,I empirically analyse the wealthy families' consumption and saving behavior in China with OLS,Probit and the Median Regression method.The empirical results show that:(1)Although it can not be concluded that the more the household wealth is,the higher the savings rate is,but it is obvious that the saving rate of our high income families is positive,and saving rate of the 60-89 year old families with high income is relatively high.Secondly,the relationship between household saving rate and permanent income varies according to the different agent variables.The more household income is,the higher the household saving rate is when the current income is the proxy variable of permanent income.Due to the shortcomings of measurement errors and temporary fluctuations in current income.When the household wealth is used as a proxy variable for permanent income,only richer families have a positive saving rate.(2)Two kinds of rich families(the top 20% of wealthy families,the top 20% of families income groups)whose family wealth has a negative impact on household saving rate.And with the improvement of household education,it helps to reduce household saving rate.Secondly,the increase of cognitive ability has a negative impact on the family savings rate in the top 20% of family income groups.(3)In the top 20% of wealthy families,family wealth variables and family communication expenses,education and entertainment expenditure variables significantly positive correlation,indicating higher wealthy household to pay more attention to social network maintenance,culture and entertainment consumption.In the top 20% of family income groups,the influence of family income variables on family / home appliance / service daily expenses,living expenses,education and entertainment expenditure variables is more obvious,that higher income households focus on daily living consumption and entertainment consumption.