The New Measurement of Chinese Urban Residents Precautionary Motive and It's Interpretation

The extraordinary growth of savings in China has been to the attention of all walks of life. This paper derived new formula to measure residents precautionary saving their intensity based on the theory of the precautionary saving and the hypothesis that a rational consumers maximize one's utility, measure of. Then, we did empirical analysis by making use of annual data of 30 provincial regions from 1992 to 2009. The results showed that there exist obvious precautionary saving motivation in urban residents, and provincial difference of precautionary saving motivation intensity did exist.