The Decision Of Credit Card Payment With Its Impact On Household Consumption

The traditional idea about” first save,post-consume” is gradually loosening,but the conception of credit consumption is being prevalent,and credit cards are widely accepted by people for their instant and efficient credit services and convenient payment functions.However,the series of issues such as “what is the impact of credit card payment decisions”,“what impact can it significantly increase household consumption” and “how to increase household consumption” are less systematically studied.Firstly,this article briefly introduced the operation of the credit card industry in China.Then,based on the combing and analysis of domestic and foreign documents,three hypotheses are proposed.On this basis,this article introduced the relevant variables and uses a binary discrete model(Probit)to examine the residents' credit card payment decisions.Taking into account the potential endogenous problems of credit card payment decisions,this article uses the PSM model and instrumental variables approach to deal with the problems caused by endogenous effects.In addition,in the PSM model,this paper analyzed the heterogeneity based on the three dimensions of the consumption level,the degree of liquidity constraint,and the region.Further,this article uses the mediation effect analysis method to explore the mechanism of credit card payment affecting household consumption.The benchmark model regression results show that after considering the endogenous problems caused by the sample's self-selection effect and two-way causality respectively,residents' credit card payment behavior significantly increases their level of household consumption.On average,credit card payments causally led to an increase of about RMB 15,000 in household annual consumption.The results of heterogeneity analysis show that the effect of credit card payment on resident consumption will be significantly different due to the level of consumption,the degree of liquidity constraints,and the region.The effect of credit card payment for stimulating consumption is most obvious at the well-to-do level,and the pulling effect at the level of guaranteeing consumption and individual desire is significantly lower than that of the well-to-do level.The effect of credit card payment for stimulating consumption is significant and highest in the crowd with high liquidity constraints;the effect of credit card payment for stimulating consumption is significantly positive in the central and eastern regions.The average treatment effect in the eastern region is stronger than that in the central region,but not in the western region.The results of the mechanism analysis show that the credit card payment tools have a direct impact on household consumption levels on the one hand,and indirectly affect the household consumption level through the intermediary variables of consumption propensity.