A Study Of The Relationship Between Demographic And Household Savings Rate In Zhejiang Province

Savings rate plays an important role in the economics of a country, and the demographicsalso affects deeply about the savings rate. The routine mechanism of this article is fixed byanalyzing the impact of each characteristic of demographics to savings rate. By choosing thepanel data between2003and2012in each city of Zhejiang province to do regression, it showsthat raising rate can explain the difference of each city’s saving rate using entity fixed effectsregression mode, and verify that the relationship between demographics and saving rate issimilar to Life Cycle hypothesis. Based on this model, the effects among raising rate, savingrate and average consumption have also been verified. The result shows that, during the periodof demographic dividend, birth rate and youth raising rate decrease, in order to improvedynamic efficiency, increase average consumption, we must increase saving rate; meanwhile,during the period of demographic debt, labor force decreases and old raising rate increases, inorder to increase average consumption, improve dynamic efficiency, we must decrease savingrate.