|Institution:||University of Oslo|
|Full text PDF:||http://urn.nb.no/URN:NBN:no-19458
This thesis is about the age structure effects on consumption function. We have established a theoretical model between consumption and age structure, and investigated an empirical relationship between them in the case of China. This thesis is based on the theory of permanent income and life cycle consumption function. The age structure variables of prime saver ratio and dependency ratio are introduced into the analysis. This thesis contributes in the adjustments of the theoretical consumer behavior model of China and the measurement of the Chinese prime saver ratios. In this case, we approved that the age structure has effects on aggregate consumption.