EASC Colloquium: Amanda Michaud: The Causes and Consequences of China's High Household Savings Rate

The East Asian Studies Center at Indiana University presents a public talk by Amanda Michaud-an Assistant Professor in the Economics Department at Indiana University. The talk will focus on the causes and consequences of China's high household savings rate.

The average Chinese household saves over 30% of its annual income, more than three times as much as the average American household. This talk considers the causes and consequences of Chinese exceptionalism in this regard. First, we will look beyond the average to uncover peculiar facts about the demographics of who saves in China. These facts inform a range of theories, from the breaking of the "iron-rice bowl" to competition for wives, of why savings are so high. Finally, we will take a look at how this savings behavior is linked to China's comparative advantage in cheap labor and export-led growth; and the challenges this poses for the study of China's unique economic growth path.

Amanda Michaud is an Assistant Professor in the Economics Department at Indiana University. She is an applied macroeconomic theorist with research interests in labor markets, international economics, and policy design. Her most recent works in labor include an optimal design of disability insurance considering occupational choices and the development of a framework to measure the impact of the US criminal justice system on labor markets. Her most recent work in international explores how borrowing constraints affect labor supply and capital flows, and is forthcoming in the Journal of International Economics.