Research On The Impact Of Household Debt On Consumption Expenditure Of Urban Residents In Shaanxi Province

With the development of market economy and the improvement of financial condition as well as the change of social consumption notion,consumption concepts such as advanced consumption and debt consumption have gradually been recognized and accepted by the public.Debt consumption has become more and more common.From "fear of debt" to "high debt",the debt scale of residents’ families has been expanding.Due to the rising house prices,Housing debt accounts for an increasing proportion in the total debt of households.Many families are burdened with great pressure to repay their housing debts,and the heavy housing debts have inhibited the consumption enthusiasm of households,which is not conducive to expanding domestic demand.Moreover,novel coronavirus pneumonia has been spreading globally and trade protectionism has risen in recent years.How to promote economic growth from foreign trade,investment and export to expanding domestic demand to stimulate economic growth is the key point and difficulty of China’s current reform.However,the insufficient consumption of households is difficult to promote high-quality economic development and adapt to the international economic environment with frequent international trade conflicts.In addition,China’s urbanization rate is growing rapidly,the contribution of urbanization to economic growth is more than 10%,and the consumption in cities is more than 2.3 times higher than that in rural areas.Therefore,exploring how household debt affects household consumption expenditure will help enrich research on the impact of household debt and household consumption expenditure,It can also put forward effective suggestions for urban households on how to formulate consumption plans and how to manage household debt,and has reference significance for the government on how to formulate and implement economic policies.Compared with the eastern region of China,the economic and social development of most regions in the western region is relatively backward,and the consumption level of residents in the central and western regions is generally low.Therefore,an in-depth study of the current situation and structure of urban household debt and consumption in the western region is required.,and how debt affects consumption is of great significance to expanding domestic household consumption demand,stimulating household consumption,and promoting the development of the western region.Therefore,this paper takes Shaanxi Province,a major western economic province,as an example to study and analyze the current situation of urban residents’ debt consumption in Shaanxi Province.and studies how urban residents’ household debt affects household consumption expenditure and consumption structure,which is of great significance to enrich the research on urban residents’ household debt and consumption,and also to the current high participation rate of residents’ household debt Provide a reasonable explanation and targeted policy suggestions for the contradiction of large debt scale but low consumption rate and the disharmony of household debt structure.Using the data of Shaanxi statistical yearbook from 2010 to 2019,the data of Xi’an Branch of the people’s Bank of China and the data of China Household Finance Survey(CHFS)in 2019,the current situation of household debt and consumption of city residents in Shaanxi Province was analyzed,and explores the impact of household debt on household consumption of urban residents in Shaanxi Province.This paper mainly answers the following four questions: first,How does the household debt of urban residents in Shaanxi Province affect the household consumption;Second,what are the differences between different types of debt and different scales of debt on household consumption expenditure and consumption structure? Third,what are the differences in the impact of household debt on consumption among different types of households? Fourth,is the household debt of urban residents in Shaanxi Province excessive,and how to measure the threshold of excessive debt?The empirical results show that household debt can promote household consumption expenditure and optimize household consumption patterns of urban residents in Shaanxi Province.Households can alleviate liquidity constraints and promote consumption through debt.Housing debt in household debt will inhibit consumption expenditure and negatively affect the optimization of consumption structure.The larger the scale of housing debt,the lower the consumption expenditure.Production and operation debt has a significant positive impact on household consumption expenditure and consumption structure optimization.Within an appropriate range,the larger the debt scale,the higher the household consumption expenditure.For different types of households,the impact of household debt on consumption is also different.For households with different heads of household,this paper divides the whole sample into three samples: under 40 years old,40 ～ 60 years old and under 60 years old.The empirical results show that household debt can promote the consumption expenditure of40-60-year-old household headed households and optimize the consumption structure;For households with different types of work,household liabilities have a significant positive impact on the consumption expenditure and consumption structure optimization of households with stable income in the future;For families with different annual income,household debt has a significant positive impact on the consumption expenditure of lowincome families.Finally,in the analysis of the appropriateness of the debt of urban households in Shaanxi Province,this paper measures the threshold of excessive debt of urban households in Shaanxi Province through the combination of subjective and objective measurement.Firstly,three indicators of excessive debt are constructed.Combined with the content of the questionnaire,an "imperfect gold standard" for the subjective measurement of family economic pressure is established.By comparing the relationship between the indicators of excessive debt and the imperfect gold standard,the optimal thresholds of the three indicators of excessive debt are determined.Based on the empirical analysis of the above contents,this paper puts forward the following policy suggestions: first,build and improve the credit mechanism and guide the transformation of residents’ consumption concept.Build and improve the credit mechanism,guide the transformation of residents’ consumption concept,improve the loan conditions at different income levels,moderately relax the conditions for small and short-term loans for low-income families,release the consumption potential of low-income families,and give full play to the role of residents’ liabilities in promoting consumption.Second,build scientific indicators and strengthen the supervision of the scale of household debt.We will deepen the reform of the real estate market,strictly regulate the threshold of housing credit,guide the healthy development of the real estate market,reduce the pressure on Residents’ housing debt and stimulate consumption.Third,improve the social security mechanism and improve the income level of residents.Improve the social security mechanism,reduce social concerns about pension issues,reduce the tendency of social savings,increase the income of lowincome groups,and effectively stimulate the consumption vitality of residents’ families.