Public Expenditureson Social Programs and Household Consumption in China

by Emanuele Baldacci, Ding Ding, David Coady, Giovanni Callegari, Pietro Tommasino, Jaejoon Woo, Manmohan S. Kumar

Series: IMF Working Papers

Subject categories
ISBNs
  • 1452742987
  • 9781451982138
  • 9781452742984
  • 9781451981988
This paper shows that increasing government social expenditures can make a substantive contribution to increasing household consumption in China. The paper first undertakes an empirical study of the relationship between the savings rate and social expenditures for a panel of OECD countries and provides illustrative estimates of their implications for China. It then applies a generational accounting framework to Chinese household income survey data. This analysis suggests that a sustained 1 percent of GDP increase in public expenditures, distributed equally across education, health, and pensions, would result in a permanent increase the household consumption ratio of 1¼ percentage points of GDP.

  • International Monetary Fund; March 2010
  • ISBN: 9781451981988
  • Read online, or download in secure PDF or secure ePub format
  • Title: Public Expenditureson Social Programs and Household Consumption in China
  • Series: IMF Working Papers
  • Author: Emanuele Baldacci; Ding Ding; David Coady; Giovanni Callegari; Pietro Tommasino; Jaejoon Woo; Manmohan S. Kumar
  • Imprint: INTERNATIONAL MONETARY FUND
Subject categories
ISBNs
  • 1452742987
  • 9781451982138
  • 9781452742984
  • 9781451981988
Subject categories
ISBNs
  • 1452742987
  • 9781451982138
  • 9781452742984
  • 9781451981988