Research On The Impact Of China’s Household Asset Structure On Consumption Expenditure From The Perspective Of Heterogeneity

For a long time,the lack of residential consumption has been a prominent problem in China’s economic transformation and development.The 20 th CPC National Congress clearly points out that building a high-level socialist market economy system requires a focus on expanding domestic demand and enhancing the fundamental role of consumption in economic development.Thus,raising the level of resident consumption and promoting the upgrading of resident consumption is an inevitable choice to transform the mode of economic growth and promote the healthy development of China’s economy.However,the China household final consumption rate is increasing slowly,and in a horizontal comparison of countries,the household final consumption rate is obviously at a low level,and the fundamental role of consumption in economic development is increasingly strengthened,so it is urgent to unleash the potential of household consumption.In addition,China’s household asset structure is dominated by real estate and other assets that are difficult to liquidate,while financial assets account for a relatively low proportion and are mostly low-risk and low-return assets,and with economic development,the household asset structure shows inter-group differences.Therefore,based on the China Household Financial Survey(CHFS),this thesis investigates the impact of household asset structure on heterogeneous household consumption expenditure under the perspective of heterogeneous consumers,as a basis to guide the rational allocation of household asset structure and provide theoretical and practical basis for the government to implement precise policies to stimulate consumption growth.Based on the above research implications,this thesis identifies Ht M(hand-to-mouth)households who subject to liquidity constraints and n Ht M(non-hand-to-mouth)households who not subject to liquidity constraints based on the classical theory of heterogeneous consumers,and conducts research in the following two aspects under this study: First,this thesis study the impact of household total asset structure on consumption expenditure from a heterogeneous perspective,that is,from the perspective of the proportion of liquid assets to total assets;Second,this thesis study the impact of the internal structure of household liquid assets and non-liquid assets on consumption expenditure from a heterogeneous perspective,that is,from the perspective of the proportion of risk assets to liquid assets and the proportion of housing assets to non-liquid assets.Through the empirical test of this thesis,two main conclusions are drawn.First,the larger the proportion of liquid assets to total assets,the more the household consumption expenditure,and the coefficient of the impact of the proportion of liquid assets of Ht M households on consumption expenditure is significantly larger than that of n Ht M households;The mechanism analysis found that the increase in the proportion of liquid assets of Ht M households brings a greater real income effect,thus promoting household consumption more effectively;In the analysis from the perspective of urban and rural areas and age structure,the impact of the proportion of liquid assets of n Ht M households on household consumption expenditure has significant differences between urban and rural areas and different age groups.The impact coefficient of n Ht M households in the urban group is significantly larger than that of n Ht M households in the rural group.The impact coefficient of n Ht M households in the low age group is significantly larger than that of n Ht M households in the high age group.Second,the impact of the internal structure of liquid assets and non-liquid assets on the consumption expenditure of heterogeneous households was analyzed separately: Firstly,from the perspective of the internal structure of liquid assets,the proportion of risk assets to liquid assets has a significantly positive impact on household consumption expenditure,but this impact only exists in n Ht M households.The test from the perspective of different income levels found that the increase in the proportion of risk assets of n Ht M households can promote household consumption better by obtaining property income.In the heterogeneous analysis,the impact of the proportion of risk assets in high-income groups on household consumption expenditure is weaker than that in low-income groups,and this impact only exists in n Ht M households.Secondly,from the perspective of the internal structure of non-liquid assets,the proportion of housing assets to non-liquid assets has a significantly negative impact on household consumption expenditure,and the negative impact on n Ht M households is greater than that on Ht M households.This may be due to the greater negative impact on the proportion of property income caused by the proportion of housing assets in n Ht M households.And n Ht M households with housing debt have a greater crowding-out effect than n Ht M households without housing debt.Based on this,this thesis puts forward corresponding policy suggestions for releasing the potential of household consumption in China from the aspects of increasing household income and promoting the rational allocation of household assets: First,ensure the continuous and stable growth of income to provide strong support for consumption.Second,support the development of the financial market and increase the yield of financial assets.On the one hand,it will make household asset allocation shift to more liquid financial assets.On the other hand,it will increase household property income and promote household consumption.Third,adhere to the real estate policy guideline that “housing is for living,not for speculation”,and stabilize housing prices,control the excessive growth of housing debt scale,improve the real estate market and related credit market,and promote the development of the rental housing market.Fourth,guarantee the income of non-financial assets such as agriculture and industry for households and support social idle assets to participate in production activities such as industry and commerce.Starting from these four aspects,guide households to optimize their asset allocation,reduce the overall cost of asset realization,increase the overall yield of assets,and thus realize the release of household consumption potential in China.