China’s Residents’ Risk Preference And Consumer Credit

With the support of relevant policies,the rapid development of consumer credit stimulates the consumption demand of residents,which is of great significance to economic growth.It is of great practical significance to carry out consumer credit research to promote the healthy development of consumer credit.The article will use CHFS microscopic data to study the impact of consumer credit,especially the impact of risk preference.The paper analyzes the influencing factors of consumer credit,and focuses on the impact of risk preference on consumer credit.Secondly,based on the large-scale micro-data of CHFS,the situation of China’s household consumption credit market is from risk preference,financial status,demographic characteristics,future economic expectations,other factors,and so on.In the past,the domestic and foreign research trends are summarized and summarized.And then the logistic regression model is used to study the relationship between risk preference and consumption credit.The risk preference of investment and of life are selected to study the influence of risk preference on the consumer credit.Finally,the four explanatory variables about risk preference are combined into a risk preference factor by factor analysis,added to the regression model,and the interaction item of the explanatory variables and financial factors(expenditure income ratio)is added to the model.in order to gain a clearer understanding of the relationship between risk preference and consumer credit.The following conclusions are drawn:First,whether it is a risk preference factor or four explanatory variables about risk preference,they show a significant positive relationship between family and consumer credit.That is,for risk averse who do not want to carry out consumer loans,for the risk of those who are more willing to carry out consumer credit.Second,there is interaction between risk preference and financial factors,and its interaction has a positive impact on whether or not to choose consumer credit.Finally,gender is no longer the main factor of consumer credit in relation to the influencing factors of consumer credit.The age has negative impact on consumer credit.The degree of residents’ education is positively correlated with consumer credit.Based on the above analysis,the recommendations are as follows:consumers must pay more attention to the relevant news and be familiar with consumer credit;commercial banks can further optimize the varieties and business processes of consumer loans with the help of emerging Internet media business promotion;government must increase investment in education to promote education and so on.