nep-cna New Economics Papers
on China
Issue of 2010‒01‒30
two papers chosen by
Zheng Fang
Ohio State University

  1. China: Does Government Health and Education Spending Boost Consumption? By Ray Brooks; Steven Barnett
  2. Poverty and Vulnerability in rural China: Effects of Taxation By Katsushi S Imai

  1. By: Ray Brooks; Steven Barnett
    Abstract: Consumption in China is unusually low and has continued to decline as a share of GDP over the past decade. A key policy question is how to reverse this trend, and rebalance growth away from reliance on exports and investment and toward consumption. This paper investigates whether the sizable increase in government social spending in recent years lowered precautionary saving and increased consumption. The main findings are that spending on health, but not education, had an impact on household behavior. The impact, moreover, is large. A one yuan increase in government health spending is associated with a two yuan increase in urban household consumption.
    Date: 2010–01–15
  2. By: Katsushi S Imai
    Abstract: This paper studies the impact of taxation on poverty and ex ante vulnerability of households in rural China based on national household survey data in 1988, 1995 and 2002. [CPRC working paper 156].
    Keywords: poverty, vulnerability, taxation, rural China, inequality, household, survey data,
    Date: 2010

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