Research On The Impact Of Asset Price Fluctuations On Urban Residents' Consumption

Residential assets mainly refer to the real assets such as housing owned by residents and financial assets such as stocks.In recent years,the price fluctuations of these two types of assets show different trends.Influenced by institutional reform and foreign financial markets,the stock market has experienced several big fluctuations.With the continuous development of China's economy and the continuous increase of urban residents' income,the scale of assets owned by urban residents also gradually expands.Under such circumstances,according to the relevant theories of consumption economics,the relationship between asset price fluctuations and household consumption becomes more and more important.Therefore,it is of great practical significance to study the impact of asset price fluctuations on urban residents' consumption to promote the upgrading of residents' consumption quality and promote high-quality economic development.In this paper,following the theoretical basis,the transmission mechanism,the empirical analysis,policy recommendations "the research train of thought,first by reading related literature both at home and abroad,studies the consumption economics related theory,and analyzes the housing and stock prices affect residents' consumption of the transmission mechanism,found wealth effect under the asset price volatility transmission mechanism and crowding out,should expand the wealth effect and avoid crowding out,can effectively promote the town residents' consumption.This article selects the macro provinces from 2003 to 2017,establishes a model of panel data,through the fixed effects and the two threshold regression are empirically the panel data model,respectively in different regions and different income groups,house prices and the stock price fluctuation influence on urban residents' consumption,the results showed that the overall mainly promoted the town residents' consumption growth,especially in the central and western regions house price fluctuations have bigger influence on the urban residents' consumption;Both the overall and subregional estimation results of stock price fluctuations show that the rise of stock price does not significantly promote the consumption of urban residents,and only the increase of stock price in the middle and high-income groups will increase the consumption of urban residents.In the process of asset price fluctuation,consumer loans relax the liquidity constraint and promote the consumption of urban residents.According to the conclusion of empirical analysis,this paper believes that maintaining moderate fluctuation of asset price is beneficial to urban residents' consumption,and it is necessary to further improve the housing price control mechanism,stimulate the wealth effect of stock assets,and guide residents' consumption and investment ideas.