Analysis On The Influencing Factors Of Resident Debt In The Yangtze River Delta Region

Because of the rapid expansion of my country’s economy,the receipts of residents has been improved to a certain extent,and their standards of living have also been continuously improved.However,due to excessive consumption,the increasing debt of residents has become a relatively important practical problem.This article takes household debts in the Yangtze River Delta region of China object of study and uses 2017 data from the China Family Finance Research Center to solve the debt problem of residents in the Yangtze River Delta.It further makes a thorough inquiry about the household debt behavior ofresidents in the developed coastal areas.The main content of this article is to make an introduction the location advantages and economic conditions in the Yangtze River Delta,with exploring the size and structure of the Yangtze River Delta’s household debt.Based on CHFS2017 China Household Financial Survey data,relevant factors are selected to perform statistical description and analysis of household debt demand and quantity,and the characteristics of household debt demand and quantity are obtained.Then the Probit and Tobit model is employed to analyze the causes that affect the demand and quantity of household debt in the Yangtze River Delta.This paper that is based on the empirical analysis of the household debt’s influencing elements divides the overall sample into urban and rural areas to analyze the heterogeneity of urban and rural households.The main conclusions of this article are as follows: household debt is negatively affected by household income.At the same time,the level of education have had a significant negative impact on debt with the age of the head of household.However,there is a positive moral relationship between social status and debt.Between the number of family members and debt,there is a big negative relationship.Family demographic data show that education level has no significant effect on debt scale,while household head’s age,marital status,physical condition,and number of family members significantly affect debt scale.The household head’s age significantly negatively affects debt scale,marital status,physical status.There is a significant positive correlation between the number of family members and the scale of debt.The asset status of a family also has a certain impact on the scale of liabilities.For example,total assets and financial assets significantly affect the total family debt.In this aspect,in the light of the problems in the research report,this study comes up with suggestions related to solving the problem: the government can increase the coordination and management between banks and other financial institutions;adjusting loan interest rates and improving fiscal policy;striving to increase people’s income and improve the social security system;encouraging people to learn financial knowledge and cultivate correct investment concepts.