Research On The Influence Of Family Leverage On Happiness

Since the financial crisis in 2008,China's leverage ratio has continued to rise.At the end of 2015,the central government officially listed “de-leverage” as a key task of “supply-side structural reform”.In this context,the leverage ratio of the financial enterprise sector,the leverage ratio of the non-financial corporate sector and the leverage ratio of the government sector have declined,but the leverage ratio of the residential sector has continued to rise,rising from 40.4% in the first quarter of 2016 to the second in 2019.55.3% of the quarter.The rise in the rate of resident poles will have an impact on the happiness of the residents.Some scholars have explored their impact on happiness from the perspective of macro-resident leverage.However,the macro-residential leverage ratio only considers the liabilities of formal financial institutions and can not fully reflect the family debt situation.Therefore,this paper studies the influence of family leverage on happiness from a micro perspective..Firstly,This paper uses the Ordered Probit model to empirically test the impact of household leverage on happiness.The results show that household leverage is significantly negatively correlated with happiness.Secondly,it analyzes the specific ways that family leverage affects happiness.It finds that rising household leverage will cause consumer spending to rise.Consumer credit will bring durable goods or solve housing,automobile,education,medical and other capital needs.It also has a negative effect on happiness by reducing the individual's health level and increasing working time.The negative effect is more significant and the final total effect is consistent with the baseline regression.Finally,this paper examines the impact of household leverage on happiness by heterogeneity of liability types,heterogeneity of employment status and heterogeneity of risk attitudes.The results show that the leverage ratio of formal financial institutions will enhance happiness,informal finance.Leverage will reduce happiness,and the negative effect is more significant,consistent with the benchmark regression results;employer's household leverage does not affect happiness,employee's household leverage is significantly negatively correlated with happiness;risk preference's household leverage is good for happiness There was no significant impact and the household leverage ratio of risk averse was negatively correlated with happiness.Based on the research conclusions,this paper proposes that relevant departments improve the constraint mechanism of household debt growth,construct the family debt risk prevention and control mechanism and restructuring mechanism,and actively guide residents' rational liabilities to improve the people's happiness level.