Chinese Family Intergenerational Transfer Relations With Endowment Sustainability Research

Aging of population is gradually becoming a regular social situation all over the world, which brings along many problems. Among these problems, finding a way to sustainably support the old people is of much importance. During the exploration, Western countries tried to set up social security system early from the start. This system, which has been shaped brick by brick in the long era of social development, finally becomes the foundation of the elderly support system which includes universal social pension, personal savings, commercial insurance and many other financial resources. However, because of fast growth of the aging population in Western countries, state’s financial burden of welfare expense increases much quickly, which induces national financial problems and intergenerational conflicts.Chinese government began to establish the Social Security System in late20th century. It started with studying the existed welfare system of the West. But China has to deal with huge population, and geographical difference in population distribution, high unemployment rate and uncompleted social security system, which all leads to a low level of development of present social security system. Moreover, Western countries cannot rely on its social security system to solve all the problems arising; therefore, there must be significant limitations for China to rely on this social security system to support its old. Surveys from the National Committee of Aging population have revealed a fact that family support has been the first choice for a population of more than39%of the old. Nowadays, upward inter-generational transfer is an important way of elderly support. It helps to take care of the old generation, while, stimulates more investment from family to enhance human capital accumulation in the long-run. Higher human capital level means more production outputs in the future, and this will help to alleviate the hardship of the task of elderly support in the future. In order to explore the sustainability of the elderly support, there are far-reaching meanings for us to research intergenerational transfer and compare with other ways of elderly support. The main research topics include:establishment of a computable general equilibrium model for long-term simulation modeling, which runs through seven periods,140years; involving4markets, goods market, labor market, capital market, pensions system and government activities; it researches through a man’s full lifetime; it includes a typical family which consists of three generations of people; the model is made of over1000equations, over1000independent variables. Simulation program refers to more than30parameters which control six different intergenerational transfer scenarios. More than20,000research data is exported after the completion of simulation procedures. This thesis carries out careful analysis based on the simulation data which leads to the final conclusions. Policy suggestions are derived from all the research analysis and final conclusions. It is a very meaningful research, and further researches still can be important.