Explaining Differences in Savings Across Countries. Hong Kong and Singapore have similar levels of GDP, neither has a U.S.-style Social Security system, and the majority of their residents have...

Explaining Differences in Savings Across Countries. Hong Kong and Singapore have similar levels of GDP, neither has a U.S.-style Social Security system, and the majority of their residents have Chinese ancestry. Yet, consumption as a fraction of GDP is much higher in Hong Kong than in Singapore. What can explain this difference? (Related to Application 3 on p. 175.)