{
  "title": "Public Expenditures on Social Programs and Household Consumption in China",
  "publication": "IMF Working Papers, March 1, 2010",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/31/public-expenditures-on-social-programs-and-household-consumption-in-china-23716",
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  "summary": "This paper shows that increasing government social expenditures can make a substantive contribution to increasing household consumption in China.",
  "sections": [
    {
      "heading": "Main findings",
      "content": "- Increasing government social expenditures can make a substantive contribution to increasing household consumption in China.\n- 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.\n- The paper combines:\n  - An empirical study of the relationship between the savings rate and social expenditures for a panel of OECD countries, used to provide illustrative estimates of implications for China.\n  - A generational accounting framework applied to Chinese household income survey data."
    },
    {
      "heading": "Methodology and analysis",
      "content": "- Empirical panel analysis:\n  - Examines the relationship between the savings rate and social expenditures for a panel of OECD countries.\n  - Uses those empirical relationships to generate illustrative estimates for China.\n- Generational accounting:\n  - Applies a generational accounting framework to Chinese household income survey data to assess the impact of public expenditure changes on household consumption."
    },
    {
      "heading": "Policy implications and interpretation",
      "content": "- Reallocating or increasing public expenditures toward social programs (education, health, pensions) can raise household consumption ratios.\n- A policy increase of social spending equivalent to 1 percent of GDP, evenly split across education, health, and pensions, is estimated to have a lasting positive effect on household consumption as measured by the household consumption ratio.\n\n---\n\n Content in this bundle\n\n- 1. Household Saving Panel Regression, 1990–2008\n  - 1. Household Saving Panel Regression, 1990–2008 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - 1. Household Saving Panel Regression, 1990–2008 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/public-expenditures-on-social-programs-and-household-consumption-in-china-23716"
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    "Authors: Emanuele Baldacci, Ding Ding, David Coady, Giovanni Callegari, Pietro Tommasino, Jaejoon Woo, Manmohan S. Kumar",
    "Published: March 1, 2010",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451982138.001",
    "Increasing government social expenditures can make a substantive contribution to increasing household consumption in China.",
    "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.",
    "The paper combines:",
    "Empirical panel analysis:",
    "Generational accounting:",
    "Reallocating or increasing public expenditures toward social programs (education, health, pensions) can raise household consumption ratios.",
    "A policy increase of social spending equivalent to 1 percent of GDP, evenly split across education, health, and pensions, is estimated to have a lasting positive effect on household consumption as measured by the household consumption ratio.",
    "**1. Household Saving Panel Regression, 1990–2008**"
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      "title": "1. Household Saving Panel Regression, 1990–2008",
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