An Empirical Research Of The Impact Of Household Leverage On Common Prosperity In China

Achieving common prosperity is not only the essential requirement of socialism,but also the essential requirement of Chinese-style modernization.In recent years,in the process of promoting the realization of common prosperity,China’s economic development level has gradually improved,the scale of middle-income groups has gradually expanded,and the social security system has tended to improve.However,there are still significant urban-rural,regional,and income disparities in China.As one of the main subjects of China’s macroeconomic operation and at the same time as the subject of achieving common prosperity,the debt behavior of residents will certainly affect the realization of common prosperity through their consumption and investment.Therefore,in the current context of high household leverage in China,it is important to study the impact of household leverage on common prosperity.Firstly,based on the panel data of 264 cities in China,this paper uses the combination weight method and the coupling coordination degree model to measure the common prosperity index of each city from 2015 to 2020.It is found that the common prosperity of cities shows an upward trend year by year in time,and shows the characteristics of high in the East and low in the West in space.The kernel density estimation results indicate that there is no serious polarization in the common prosperity of cities in China.Secondly,the results of the global Moran index show that the household leverage and common prosperity are both positively correlated in space.The scatter plot of the local Moran index indicates that household leverage and common prosperity show a "high-high-low" aggregation characteristic.Finally,a spatial Durbin model is constructed to study the impact of household leverage on common prosperity.It is found that household leverage will significantly inhibit common prosperity,and the inhibitory effect has a spatial spillover effect.In addition,opening up,credit supply and government expenditure will promote the common prosperity of adjacent areas,while capital flows show an inhibitory effect;heterogeneity analysis shows that the direct and indirect effects of household leverage on the impact of common prosperity in the eastern and central-western regions are significantly negative;the sub-dimensional analysis shows that the direct effect and indirect effect of household leverage on common degree are negative,while the indirect effect on prosperity is positive.To solidly promote common prosperity and control household leverage,it is recommended to promote the reform and development of the following areas in China: first,deepen coordinated regional development,implement the mechanism of counterpart assistance,play a comprehensive leading role in the eastern region,and promote the formation of a new pattern of western development;second,continuously optimize the income distribution pattern,and further improve the income distribution system;third,strengthen the macro-prudential management of household leverage,implement regional and differentiated control policies,and implement "city-based policies".