Offspring’s Uncertainty and Dynastic Decisions : Evidence from Urban China
This paper investigates the impact of offspring’s uncertainty on intergenerational decisions. We exploit the experiment of the national college entrance examination (NCEE) reform in China, which increases the income uncertainty of households with compulsory education students. Based on comprehensive survey data, we find that 1) offspring’s income uncertainty significantly decreases the household total consumption and shifts consumption structures toward intergenerational inputs and housing purchases; 2) excessive housing demand is attributed to dynastic precautionary motivation, which poses heterogeneous effects according to the status quo bias regarding the exposure to and perception of the reform; 3) the inclusion of illiquid housing assets tilts the portfolio of households toward safer and liquid financial assets, and this allocation adjustment makes households financially worse off
Year of publication: |
2022
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Authors: | Fan, Ying ; Wang, Yidi ; Yang, Zan |
Publisher: |
[S.l.] : SSRN |
Subject: | China | Stadt | Town | Risiko | Risk |
Description of contents: | Abstract [papers.ssrn.com] |
Saved in:
Extent: | 1 Online-Ressource |
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Type of publication: | Book / Working Paper |
Language: | English |
Notes: | Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments October 8, 2022 erstellt Volltext nicht verfügbar |
Classification: | D81 - Criteria for Decision-Making under Risk and Uncertainty ; R21 - Housing Demand ; g51 |
Source: | ECONIS - Online Catalogue of the ZBW |
Persistent link: https://www.econbiz.de/10014236583
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