"This book is the third study done by the Research Group on Social Structure Change in Contemporary China, a group affiliated with the Institute of Sociology, Chinese Academy of Social Sciences. The group has focused on the process of development and change in contemporary Chinese social...

This paper uses the standard one-sector neoclassical growth model to investigate why China’s consumption has been low and investment high. It finds that the low cost of capital has been quantitatively an important factor. Theory predicts that the price of capital may have been significantly...