The Impact Of Social Capital On Chinese Household Debt Behavior And Its Heterogeneity

With the rapid development of the national economy,the wealth of Chinese households has been gradually accumulated,and at the same time,the occurrence and degree of debt of Chinese households have also seen an obvious increase.We should realize that passive and subsistence borrowing is no longer the main part of the general debt generation of Chinese households.Instead,it is active and investment borrowing.China’s financial market is increasingly developed and improved,but the participation of residents’ families in the market is very limited.Especially in the rural family group with a large base,the close kinship and friendship social network forms a spontaneous social security system,and the borrowing behavior outside the financial market is more frequent.From this point of view,the increase of household debt level in China cannot be attributed to the development of the financial market alone,but the social relationship between households may have an important impact on household debt behavior.In this paper,family social capital is defined as two concepts: the breadth of family social network and the intensity of family social interaction,which are respectively used to measure the scope and degree of interaction between family and other social members.The author thinks that the behavior of household debt has four connotations: whether to hold debt,the degree of debt,the structure of debt and the preference of loan object.Based on CFPS2016,this paper firstly fitted Logit,Tobit and multivariate Logistic regression models with four connotations of household debt behavior as the explained variables,and found that social capital can significantly improve the probability and degree of household debt.In addition,social capital can also significantly affect household debt structure and its preference for borrowing channels.Secondly,according to the attributes of urban and rural families,the samples were divided into rural sub-samples and urban sub-samples,and the regression models were fitted to analyze the urban-rural heterogeneity of social capital on household debt behavior.It was found that the influence of social capital on household debt behavior in different dimensions was different between urban and rural families.Delimit molecules after samples,depending on the type of household work four dimensions were fitted with household debt behavior index as the dependent variable regression model,found that the influence of social capital on household debt behavior at the head of the household for the family and the head of the household of agricultural workers for non-agricultural workers the difference of the family,and at the head of the household for the employees of the author’s family and the head of the household for employed workers the difference of the family.Then the interaction term between the family’s speculative demand and social capital was introduced into the model to test the difference of the impact of social capital on the family’s debt behavior under the heterogeneous family’s speculative demand.Finally,based on the understanding of the current situation of household debt in China and the research conclusion of this paper,the author puts forward relevant opinions and Suggestions from two aspects: financial institutions and government departments.