The retirement consumption puzzle revisited: Evidence from the mandatory retirement policy in China

Li, Hongbin; Shi, Xinzheng; Wu, Binzhen

doi:10.1016/j.jce.2015.06.001

Cited by 32 publications

(31 citation statements)

References 41 publications

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“…Individuals are shown to cope with ageing through leisure, revealing a creative use of consumption opportunities to foster social connections and reaffirm identities. Retirement did not negatively impact entertainment consumption (Li et al, 2015). Rather, leisure pursuits became a connection to previous lifestyle and a way to establish a new identity.…”

Section: An Integrative Reviewmentioning

confidence: 99%

Consumption Coping and Life Transitions: An Integrative Review

Yap

Kapitan

2017

Australasian Marketing Journal

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Marketing scholars have devoted considerable effort to researching the impact of life transitions on consumption behaviour. However, prior literature on life events is broad and fragmented. This paper provides an up-to-date synthesis of past findings using an integrative review covering 116 articles on life events and consumption over the last 35 years. This critical review reveals important gaps in current knowledge, and puts forward avenues for future research that flow logically from the theoretical gaps identified, thereby contributing to extant literature on life events and consumption. The resulting framework of consumption coping provides an understanding of how consumer motivations build, grow, and alter as life events occur. The goal of the review is to stimulate the field to consider deeper contextual examination of the role of life events in acquisition, consumption, and disposal of material and experiential consumption opportunities.

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Section: An Integrative Reviewmentioning

confidence: 99%

Consumption Coping and Life Transitions: An Integrative Review

Yap

Kapitan

2017

Australasian Marketing Journal

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“…The probability of obtaining benefits from NRPP is discontinuous at age 60, which allows us to implement an RD framework. Age is the discrete running variable and has been widely used as the assignment variable to estimate the effectiveness of health insurance, retirement and education (Anderson et al, 2012; Li et al, 2016). In this study, we use age as the discrete running variable.…”

Section: Estimation Strategymentioning

confidence: 99%

Can social welfare buy mass loyalty?

Yang

Shen

2020

Governance

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Do social welfare benefits enhance political legitimacy in nondemocracies? Conventional wisdom treats material interest as being the central mechanism underpinning widespread political attitudes, but social welfare is not always effective in garnering political support in nondemocracies. Using a regression discontinuity design, we find that even though receiving social welfare benefits has significantly improved individuals' well‐being, their political support in different levels of government have not significantly grown. We demonstrate that the null effect of social welfare on political support can be partially explained by individuals' exposure to political violence before. Social welfare benefits yield a backsliding effect on local government support when individuals were exposed to high revolutionary intensity.

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“…Beginning in 2007, half the sample in the rotating panel is replaced, and the full sample is changed every two years. Therefore, the data are essentially repeated cross-sectional data (Li et al, 2016). To calculate the real consumption per capita of urban households, we first divide each household consumption expenditure by the total number of family members.…”

Section: Data Descriptionmentioning

confidence: 99%

Will the Chinese economy be more volatile in the future? Insights from urban household survey data

Shi

Laurenceson

2019

IJOEM

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Purpose Consumption volatility is a key source of economic growth volatility; thus, it is an important factor in designing macroeconomic policy. The purpose of this paper is to investigate the factors that determine household consumption volatility, using urban household survey (UHS) data over the period 2002–2009 in 18 provinces in China. Design/methodology/approach Both a traditional variance decomposition method and an advanced variance decomposition method are used. Findings The traditional variance decomposition method suggests that heterogeneity of consumption goods is the key to analyze consumption volatility in China. Consumption of transportation makes the highest aggregate contribution and per-unit volatility in consumption volatility, whereas consumption of food makes the second highest aggregate contribution and the lowest per-unit volatility. Further investigation with the advanced variance decomposition method, which allows the authors to capture intertemporal dynamics and cross-household differences simultaneously, finds that the main factor determining the consumption volatility in China is intertemporal dynamics, rather than cross-household differences. Research limitations/implications Future research could fruitfully explore four issues. First, consumption upgrading has increased the volatility of China’s household consumption. How much will this affect economic growth in China under its “new normal” conditions, and how should the Chinese government respond? Second, differences between UHS data and aggregate data in the calculations of consumption risk sharing need to be investigated. Third, it is important to investigate the channels through which the Chinese government can enhance its ability to spread consumption risks and thus reduce consumer consumption volatility. Finally, further study could extend the current 18 provinces to a nation-wide sample and update the data beyond 2009 to estimate the impact of the global financial crisis. Practical implications The results suggest that when policy makers design macroeconomic policies to smooth consumption volatility, they should consider heterogeneity in household consumption goods, regional disparity and intertemporal dynamics simultaneously. Well-managed volatility of Chinese household consumption can contribute to a stable economic growth in China and the world. Social implications Well-managed volatility of Chinese household consumption can contribute to a stable economic growth in China and the world. Originality/value This paper fills this gap by using China’s UHS data to assess consumption volatility from the perspectives of heterogeneity in household consumption goods, cross-household differences and intertemporal dynamics. We make three contributions to the literature. The first contribution of this paper consists of demonstrating the contributions of heterogeneity in household consumption goods to consumption volatility. The second contribution consists of using the advanced variance decomposition method proposed by Crucini and Telmer (2012). This decomposition methodology allows the authors to examine whether household consumption volatility is due to cross-household differences or intertemporal dynamics. The third contribution is that this paper takes Chinese residents’ consumption fluctuations as the starting point to analyze the impact of consumption fluctuations on the future trend of China’s economy.

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The retirement consumption puzzle revisited: Evidence from the mandatory retirement policy in China

Cited by 32 publications

References 41 publications

Consumption Coping and Life Transitions: An Integrative Review

Consumption Coping and Life Transitions: An Integrative Review

Can social welfare buy mass loyalty?

Will the Chinese economy be more volatile in the future? Insights from urban household survey data

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