An investigation of whether pensions increase consumption: Evidence from family portfolios

Abstract

This article makes an empirical analysis on the impact of pension on residents' consumption from a micro point of view.It can be seen that pension has a great impact on residents' consumption, which is consistent with Keynesian consumption function theory. The pension system plays a great role in guaranteeing the basic life of residents after retirement. We concludes that there is an obvious positive correlation between the basic social pension and residents' consumption level.