A Study On The Wealth Effect Of The Urban Residents’ Assets

Consumption, with a significant influence on the development of the national economy, is one of the most important power of the "troika" to promote the growth of economy. Household assets play an important role in the process of consumption so that we must attach importance to the reasons of why consumption restricts the development of China’s economy. With the rapid development of economy, the rapid growth of the income, the total amount of household assets and the changing of family assets structure in China, as the power of emerging economies and the world’s second largest economy, make consumer habits and behaviors changing. On the one hand, studying "the wealth effect" help us clarify the theory of the assets wealth effect and narrow the gap with the western developed countries. This main content not only tries to clarify the meaning and mechanism of action of the wealth effect from the microscopic view, but also establishes the micro framework of the wealth effect which has important theoretical value. On the other hand, with the introduction of deposit insurance system and the bankruptcy system of banks in 2015, the nature of bank savings deposits has changed. Through the study of residents’ assets wealth effect, the government may formulate corresponding measures to stimulate economic by universal education so as to realize consumption growth and economic growth. In this paper, further research on the effect of residents’ assets to consumption and developing a scientific development strategy is of great importance.On the basis of the survery data of households assets, the existence of the wealth effect and the different mechanism of action were studied. On this basis, the main content surveries the promotion or inhibition of risk attitude. The main content not only estabilishes a theoretical framework about assets wealth effect by summarizing the domestic and foreign related research review, but also do research on the relationship between the asset value and consumption from two different angle. First of all, the main content analyzes whether the household assets have wealth effect as well as the credit. The results showed that with the two different types of asset and liability the consumer spending has significant different mechanism of action. Then, the article verified the heterogeneity of different assets for different categories of consumption. In the second part, the cross variable model about the assets risk attitude and assets was established based on the overall samples, and then the samples of different income level and age level were analyzed. The empirical results show that the risk attitudes has a different mechanism of action on different wealth effect, but the risk preference has a significant role in promoting housing assets wealth effect. And the main content also found that there is a deviation between the risk attitudes of family and the actual holdings which shows the irrationality of asset allocation and the effectiveness in financial markets. Finally, related policy suggestions about improving residents family asset allocation, promoting household consumption and driving the economic growth were put forward.