An Empirical Analysis Of The Impact Of Household Assets And Liabilities On Household Consumption

In the process of China's economic development,the government has repeatedly proposed a series of measures such as"expanding consumer spending,lowering interest rates and adjusting personal income tax",but the situation of "high savings and low consumption " still appears.As an important part of the"Troika"for promoting economic growth,consumption has always played a smaller role in the development of GDP compared to investment and exports.Moreover,China's household consumption rate has been lower than the world average.The average consumption rate has continued to drop from 46.9%in 2000 to 33.9%in 2009.Although it has rebounded slightly in recent years,it was 39.3%in 2016,but it is still very low.At around 60%of the world average.Therefore,further analysis of the factors affecting consumption cannot be ignored.In recent years,with the continuous improvement of China's financial market,the distribution of assets and liabilities of Chinese households has become more diverse.and the wealth effect of assets has become more and more obvious.Based on this,this paper will further study the impact of Chinese household assets and liabilities on consumption,and provide a reference for the corresponding consumption stimulus policies based on the empirical analysis results.This paper uses the micro-family data of China Family Panel Studies(CFPS)collected by Peking University's Open Research Data Platform in 2010,2012,and 2014 to empirically analyze the impact of Chinese household assets and liabilities on China's household consumption growth and try to answer two basic questions through empirical analysis:First,the impact of Chinese household assets and liabilities on household consumption and the extent of its impact;Second,for households with different levels of consurmption,whether household assets and liabilities have the same impact on household consumption.Based on the data collected by the large-scale micro-database CFPS,this paper select household assets and household liabilities as explanatory variables,finding that the family housing assets and family financial assets have a significant and positive impact on total household expenditures and consumer expenditures;household debts have a significant and positive impact on total household expenditures and the consumer expenditures.In addition,this paper uses panel quantile regression model to find that as the household consumption level increases,the influence coefficient of household assets,household debt and household income will rise.The main innovations of this paper are mainly focused on:First,the combination of macro data and micro data analysis,this paper uses macro data to analyze consumption trends,using micro-family data empirical analysis,a more comprehensive study of the impact of household assets and liabilities on household consumption;Second,using panel quantile regression,compare and test the influence coefficient and influence degree of each explanatory variable on 9 different quantile points,which can test both the full-sample regression model and the in-depth study by comparing the significance and size of the coefficients of different quantiles.