The Research On The Influence Of Asset Wealth Effecton Household Consumption

In recent years,As China’s rapid economic development,the level of household consumption is also rising,the consumption structure continues to upgrade.Accordingly,the family’s asset size,asset structure and asset selection behavior have also changed significantly.With the improvement of China’s financial market,increasing the value of the property,Chinese family property continue to increase,The relationship between family assets selection activity and family life consumption is more and more close,the wealth effect also can not be ignored.Based on this background,research on the effect of wealth effect on household assets in China can provide a basis for the formulation of macroeconomic policy,especially for the development of consumer stimulus policies.In this paper,we study the distribution of household assets、the wealth effect and characteristics of financial assets and housing assets in our country by using CHFS.This paper describes the related concepts of the wealth effect and explain the wealth effect of consumption from the point of view of the consumptionfunction.At the same time,this paper also illustrates the wealth effect’s conduction mechanism of financial assets and housing assets and illustrates the difference between them;Secondly,this paper makes a descriptive statistical analysis of the distribution of household assets and consumption,and makes a simple analysis of family assets selection using Probit and Tobit models;Finally,we use the LC-PIH model to analyze the wealth effect of household assets in our country,and compare the differences of the wealth effects of various types of assets.The main contribution of this paper lies in the lack of wealth effect to make up for the existing research results mainly focus on a single asset class,this paper broadens the scope of assets and focuses on the wealth effect of financial assets and real estate assets.In addition,the micro household survey data not only overcomes the limitations of the sample size of macro data,but also can be effective to test the behavior of the individual family;In terms of research methods,this paper introduces the cross terms of asset wealth and related variables to explore the differences in asset wealth effect.The results of this paper show that Chinese households tend to have lower risk of financial assets and housing assets,and the distribution of family assets varies with age,income,region and so on.On the influencing factors of asset selection,on the one hand,family size,age,gender,education level,health status,marital status,family income and other factors have an impact on the choice of Chinese family assets.On the other hand,the level of family wealth has a significant role in promoting the Chinese family to hold or allocate more assets.The debt situation has a significant inhibitory effect on Chinese family assets holdings.But the influence of ethnic groups,political outlook and other variables on family assets selection is not significant.