An Empirical Study On Assets And Wealth Effects Of Household Consumption In Rural China

Since the reform and opening-up,the number of assets of Chinese peasant family has increased rapidly.Firstly,the savings deposits of residents have increased steadily,and the types of financial assets have become more and more abundant.Secondly,as an important part of the family assets of residents,the price of housing has risen rapidly.Then,with the development of China's modernization process,more and more rural residents begin to start a small business,At the same time,with the improvement of agricultural science and technology,the value of agricultural machinery in rural residents accounted for an increase in the proportion of total family assets,and productive fixed assets received more and more attention.In addition,the consumption rate of Chinese residents has been at a low level for a long time,especially the consumption level of rural residents is far behind that of urban residents.In addition,the consumption rate of Chinese residents has been at a low level for a long time;especially the consumption level of rural residents is far behind that of urban residents.This not only makes the gradual improvement of residents' consumption level and efforts to optimize consumption structure become the focus of economic development in China for a long time,but also makes family assets become an important factor affecting family consumption and the heterogeneity of different types of household assets on family consumption also attracted the attention of scholars.Based on the panel data of China Family Tracking Survey(CFPS)in 2012,2014 and 2016,this paper investigates the impact of housing fixed assets,production and operating assets and financial assets on household consumption behavior of rural residents in China,and explores the heterogeneous impact of different types of household assets on household consumption of rural residents,to help rural family rationally allocate household assets.First,collect and collate the latest relevant literature at home and abroad,and comment on the relevant literature;secondly,sort out the development of the theory of household consumption function,and simply deduce the "asset effect" and "wealth effect" of household assets;thirdly,use the household micro-survey data in 2012,2014 and 2016 and the China Statistical Yearbook to Chinese rural households.The status quo of assets,wealth and consumer expenditure is analyzed by descriptive statistics.In the empirical analysis,thecross-sectional data of CFPS 2016 are used to identify the "asset effect" of three types of household assets of rural households in Liaoning Province and China,and the "wealth effect" of three types of household assets of rural households in Liaoning Province and China is identified by using the panel data of CFPS 2012,2014 and 2016.“From the empirical analysis results,we can see that there are "asset effect" and "wealth effect" in the household consumption of rural residents in China,including housing fixed assets,production and operation assets and financial assets.There is no "asset effect" of housing fixed assets on residents ‘consumption in Liaoning,and only productive fixed assets have "wealth effect" on residents' consumption.