Do the relaxation of fertility policies reduce household savings and investment? Evidence from the Two-Child Policy in China

This paper investigates the impacts of China's "conditional two-child" policy (CTCP) and "universal two-child" policy (UTCP) on household savings and investment behaviors through a multi-period difference-in-difference (DID) approach. Our analysis reveals that easing fertility regulations leads to a notable decrease in household savings and investments in both financial and housing assets.