An Empirical Study Of The Impact Of Endowment Insurance On Family Consumption In China

The "13th Five-Year" period is the decisive stage for building a well-off society in an all-round way.Expanding domestic demand and promoting consumption are still the top priority of government work.The consumption and savings behavior of Chinese residents have been widely and deeply studied by the academic circle,and housing,which is closely related to the life of residents,will have a great impact on the consumption of residents.The rise in housing price may bring about the wealth effect and promote the consumption of urban residents.It may also make urban residents increase savings and reduce consumption in order to buy a house,and may also make some families feel hopeless to give up buying a house,thereby savings should be reduced and consumption increased.Therefore,it is of great practical significance for the government to make a proper housing policy and to promote the consumption of the residents in our country by making clear the influence of the housing price on the heterogeneity of the household consumption of the urban residents in China.This paper tries to construct a two-period panel data by using China Family Panel Studies(CFPS)of 2010 and 2012,applying fixed effect regression to make a empirical study on the influence of housing price change on consumption of urban residents in China.The result shows that the housing price rising has a significant positive impact on consumption of urban residents.The housing price rises by 1% the consumption of urban residents will increase by 0.041%.Further expansibility tests show that the impact of housing price on household consumption is heterogeneous among different populations: the price increases by 1%,the total consumption of urban households will increase by 0.047% if the head of household is agricultural registered permanent residence,and the rise of housing price has a significant positive effect on the total consumption of urban households in the middle age group of 45-64 years old,that is,the housing price rises by 1%,the total household consumption will increase by 0.045%;the housing price rises by 1%,the total household consumption of urban residents in the eastern region will increase by 0.042%,the total household consumption of urban residents in the central region will increase by 0.086%;the housing price rises by 1%,the total consumption of urban households with the lowest income of 25% will increase by 0.087%,the total consumption of urban households with the highest income of 25% will increase by 0.107%,but the impact on the totalconsumption of urban households at the middle income level is not significant.And the housing price has a significant positive effect on the total consumption of urban residents without housing,that is,the total consumption of households with higher housing price will be higher.On the basis of the above analysis,this paper puts forward some corresponding policy suggestions,such as increasing the income of the residents,perfecting the social security system,improving the housing market and the financial market system and so on.