Research On The Impact Of Life Insurance On The Residents' Consumption

Since reform and opening up,China,the largest developing country in the world,has entered a period of sustained economic growth.However,the development of consumption has been slow.At this time,the government has proposed a series of measures to stimulate consumption.Unfortunately,these measures have proved ineffective.Then the speed of economic structure transformation in our country is seriously dragged down.In the global economy,raising the level of domestic consumption is the only way for our country to move economy forward steadily.As we all know,Chinese residents have been exposed to the risk of uncertainty for a long time.China can improve its social security system to increase residents' willingness to consume.Commercial insurance is an indispensable part of the social security system.Therefore,the study of life insurance in this paper has a strong practical significance.From the perspective of commercial life insurance,this paper analyzes the mechanism of the effect of insurance on residents' consumption.Though empirical research,this paper analyzes the mechanism of action.First of all,this paper introduces the background and significance of the selected topic,and summarizes the current situation of research.Secondly,this paper introduces the related theories of life insurance and resident consumption.Thirdly,this paper introduces the current situation of life insurance and resident consumption.Fourth,it studies the influence mechanism of life insurance on resident consumption.Fifthly,this paper makes an empirical analysis based on the above theoretical research.Finally,on the basis of the main conclusions of this paper,some policy suggestions on the development of life insurance are put forward.There are three main conclusions in this paper.First of all,life insurance plays a significant role in promoting the total consumption of residents.Secondly,in the case of classifying residents' consumption,life insurance has the most promoting effect on food consumption.Thirdly,the income of residents affects the promotion effect of life insurance.More specifically,the shape of life insurance's promotion to food consumption is inverted U-shaped;the promotion effect of life insurance on commodity consumption is increasing;the promotion effect of life insurance on durable goods consumption is decreasing.There are two possible innovations in this paper.Firstly,the research content of this paper has innovation.Most of the existing literature only focuses on basic old-age insurance.Therefore,this paper is innovative in the research of life insurance.Secondly,this paper has innovation in research methods.The propensity scoring matching method is used in this paper.PSM is used to eliminate the selective bias caused by different individuals having different propensity to buy insurance.So it can balance the individual characteristics of the sample.It can reduce the estimation bias caused by observable heterogeneity such as self-selection.