The Influence Of Financial Assets On The Consumption Of Chinese Urban Households

In recent years, the total financial assets of urban households in China rises constantly. However, the structure of urban household financial assets is the state of lowly efficiencent,and it is inhibition on the consumption of urban households. Based on the life cycle theory and Prevention of saving theory and the Relative income theory,we started studing the article from the point of macro level and micro level.Then we will put forward the corresponding countermeaures according to the researching conclusion.Based on financial assets risk and income differences and the data of 1992-2013, macro demonstration establishes the VAR model to investigate the influence bentween the change of urban households financial assets and the consumption of urban households.The empirical results show that:the wave of urban household’s hold financial assets actually influenced he consumption of urban households.From the effect of the size of financial assets, the rate of financial assets contributing household consumption reaches about 10%. From the point of view of the impact, cash increasing effect on household consumption has attribution of lagged behind,it has caused transiently inhibitory effect on consumption and long sustained role in promoting consumption. The alteration of household’s saving has the impact which have influence of crowding and promotion appear alternately in the lifecycle on consumption. The wealth effect of securities assets on consumption actually exist,but it disappeared in long term.The micro research proves the existence of household financial wealth. For the different age, education and income of householder, there is a significant difference in the effect of financial assets to their consumption. Empirical results show that, for the different ages of urban householder, the security financial assest of households who have the age between 25 and 30 year old has the biggest influcence to consumption, and the people who have the age between 30 and 40 year old holding risking financial assest has the strongest influence on the consumption.For different income families, the lower income family’s security financial assets boost consumption strongly, the higher’s risky asstes promotes consumption.For the different education of urban families, the lower degree family’security financial assets promoted comsumption of urban household obviously,and the higher degree family’risky financial assets promoted comsumption of urban household.According to the results of macro and micro empirical research, this paper puts forward the relevant countermeasures which are optimizing the investment environment of the securities market, strengthing the popularization of financial knowledge, improving the income level of residents and improve the social security system.