The Asymmetric Impact Study Of The Fluctuations Of The Stock Market And The Consumption Of Urban Residents In Jiangxi Province

With20years development, China’s stock market has played an important role in the development of the national economy. Correlation between the stock market and consumer demand increase day by day, the wealth effect of the stock market also gained more and more attention from domestic economists.In a new round of economic development period of the21st century, Jiangxi economic growth rate has gradually climbed, the people’s income and wealth are growing steadily, and financial assets held by residents such as stocks, bonds and real estate assets also increase continuously. At present, China’s capital market has get rid of the "split share" and has entered a new stage of development, However, with the spread of the international financial crisis, there has been a huge shock in China’s stock market in recent years, this requires us to re-examined the wealth effect objectively. A basic issue of macroeconomics related to which is whether the changes of residents’ income structure and the wealth asset structure caused by the fluctuations of the stock market lead to the changes of consumer behavior? This change shows what kind of features? Furthermore, whether consumers have the same degree of sensitivity and reactivity (symmetry) with the share price rose and fell?This paper started from the classical theory of the consumption function and based on first-hand survey of the urban residents in Jiangxi Province. The author select the historical data of Jiangxi Urban residents’ disposable income, the level of consumer spending, consumer confidence index and stock index. Through the stationary test, cointegration analysis and other empirical analysis methods, testing the impact of the wealth effect of the stock market fluctuation on the consumption of the urban residents in Jiangxi Province. The author reach the conclusion:there is a weak wealth effect caused by the fluctuations of the stock market, and the impact of the wealth effect is asymmetric, the positive wealth effect is greater than the negative wealth effect, which is the impact of the rose stock market on household consumption is greater than the decline stock market on household consumption. Finally, the author gives appropriate policy analysis according to the previous chapter combined with the actual situation in Jiangxi Province.