Research On The Wealth Effects Of China's Urban Residents' Financial And Housing Assets

As China's economy has entered a period of new normal state,the traditional development model driven by investment and export appears to be insufficient,with the issue of insufficient domestic demand not being effectively mitigated.How to effectively stimulate domestic demand is an issue that needs to be solved urgently in order to promote China's economic success at present.In the traditional consumption function,the wealth accumulated by residents' assets is a solid foundation to support consumption,and changes in consumer spending caused by fluctuations in asset value are defined by the academic community as “wealth effects”.Research on the wealth effects of urban residents' financial and housing Assets is carried out as follow.At first,the transmission mechanisms of two assets' wealth effects are analyzed from a theoretical perspective.Then the existence of two assets' wealth effects,regional and consumption structure differences are verified from two dimensions of time series and panel data.The findings are as follows: firstly,urban residents' wealth effects of housing and stock assets are weak in the long term,but the former is larger than the latter;secondly,the wealth effect of housing assets has regional differences;thirdly,the change in the value of housing assets has no effect on survival-type consumption,but inhibits development-type consumer spending and has a faint promotion effect on enjoyment-type consumption;fourthly,savings assets hinder the expansion of all kinds of consumer spending;fifthly,disposable income has a significant stimulatory effect on consumer spending.Finally,based on the above five conclusions,corresponding policy recommendations are put forward with a view to helping relevant departments formulate policies in order to stimulate domestic demand effectively,such as curbing the irrational rise in housing prices and effectively protecting the rights and interests of occupants;guiding the smooth and orderly development of the stock market and strengthening investor education;improving the social security system in order to eliminate the precautionary saving motives;effectively raising the residents' income level so as to promote the upgrading of the consumption structure.