Uncertainty ， Liquidity Constraints and Household High Saving in China SUFE Jieping Zhang

Background During ,GDP increased at a rate of 9.6% annually on average ， meanwhile Savings of residents increased at a rate of 18.27% annually on average. Net income of rural residents increased by 5.8 times ， Disposable income of urban residents increased by 7.5 times, Savings of residents increased 153 times. Insufficient domestic demand is the principal problems in the operation of China's economy

Two main contributions of this Paper (1). Analies the liquidity constraints and uncertainty in accounting for the Chinese household consumption behaviour. (2). Using quantile regression analies the behavior of different consumer groups.

There were two types of consumers, a class of consumers in accordance with the life cycle and permanent income hypothesis to choose the path of consumption, and the other is to use their experience of consumers are spending their income (short-type). The second category accounts for the proportion for