This paper analyzes the competitive saving motive, originally developed by Wei and Zhang (2011) with an additional parameter: per-capita income. It is hypothesized that the relationship between sex ratios and household savings rate depends upon the income of households. A game theoretical model is developed to show how income could potentially influence competitive saving. In order to test this hypothesis empirically, an OLS panel regression with fixed and time effects is used. The data is a panel dataset with observations from 29 provinces covering the years 1981-2007. This model shows the effects of income uncertainty, income inequality, and life-cycle savings patterns as control variables. Results show that low-mid income provinces exhibit competitive savings and high-income provinces do not exhibit competitive savings
Lanz, John C., "Who is Actually Competing? An Analysis of the Competitive Saving Motive" (2015). Senior Independent Study Theses. Paper 6897.
Bachelor of Arts
Senior Independent Study Thesis
© Copyright 2015 John C. Lanz