In explaining dramatic changes in Chinese household savings and money demand behaviour in the reform period, previous studies proposed and tested three different hypotheses. However, no effort has been made to distinguish quantitatively between forced and voluntary savings in terms of their...

Dissatisfied with little evidence provided on various hypotheses concerning the revenue-expenditure relation in China, this paper is an empirical endeavour to fill the gap through a battery of econometric tests for causality based on vector error correction and vector autoregression models. A...