Research On Inflation Tolerance Of Urban And Rural Households In China

With the acceleration of the process of economic globalization,China's economy will be affected by the pressure inflation from external economic,coupled with rising domestic cost of living,in the long term,it will evolve into real inflation.The issue of inflation has received more and more attention,and it has a profound impact on macroeconomic policies,measuring inflation has important practical significance.Therefore,this paper measures the inflation tolerance of Chinese urban and rural households from the micro and macro perspectives.First,based on the micro survey data,this paper uses hierarchical regression model and multi-hierarchy regression model to study the inflation tolerance of family residents in China.Secondly,based on the macro scenario analysis and stress testing model,it researches on the inflation tolerance of households in urban and rural households in China.Through empirical analysis,the following conclusions can be drawn:(1)Personal status satisfaction,macro-policy satisfaction,and inflation awareness are positively correlated with inflation tolerance.The higher the family residents' inner satisfaction and understanding of inflation,the better they can cope with inflationary pressures,and the family happiness will be stronger.(2)Influential factors are consistent in the regression analysis of high,middle and low occupational levels and inflation tolerance,and they are more manifested in the aspects of housing,household registration,and innermost satisfaction,indicating that the empirical results are robust and reliable.(3)There are three major factors that affect the inflation tolerance of China's urban and rural residents: the cost of beauty care services,entertainment fees,and medical service fees.Through the stress test,it can be found that urban households with higher income levels have a certain level of spending power,and their ability to cope with inflationary pressures is becoming stronger as the prices of entertainment and cosmetics and other products increase.Residents' inflation tolerance has gradually increased in recent years.Due to the government's subsidy policy,the prices of entertainment,the cost of beauty care services,and health care products will decline to a certain extent,so that rural residents have spending power and indirectly increase inflation endurance.This paper provides a new perspective for the quantitative study of the inflation tolerance of urban and rural households in China.