Research On The Impact Of Property Income On Household Consumption And Investmen

In recent years,the proportion of property income in China’s household income has been increasing,and its impact on household economic behavior has become increasingly prominent,and property income has also been widely concerned and discussed by political and academic circles.In the rapid development of China’s economy and the rapid advancement of urbanization,more and more families have been affected by house demolition and compensation,and house demolition compensation as one of the property income,it makes family wealth increase,and faces the problem of how to distribute assets.In various household economic activities,consumption and investment are one of the two basic activities,which play an important role in family welfare,study the impact of property income brought by house demolition compensation on household consumption and investment,help to help the government,financial institutions and families to improve their awareness of the importance of property income,help families rationally use house demolition compensation,so that family assets are effectively distributed,so as to maximize family economic utility,ensure the improvement of family welfare and stable growth of the national economy.In real life,the economic behavior of the family is very complex,for some of the irrational behaviors that cannot be explained,innovative theories and empirical research came into being,based on this,this paper attempts to study the two economic behaviors of household consumption and investment from the perspective of property income brought by house demolition in the process of urbanization,and provides theoretical and empirical supplements for some irrational economic behaviors of Chinese families.Based on life cycle theory and precautionary savings theory,this paper explains the consumption behavior of households after obtaining property income such as house demolition compensation,and explains the behavior of households participating in risky investment activities based on psychological account theory.In the consumption part,using the data of the China Household Finance Survey(CHFS)from 2015 to 2019,the fixed-effect model empirically found that the property income brought by housing demolition compensation will significantly increase the consumption level of households,which will significantly increase household consumption of durable goods,but the impact on luxury consumption is not significant.Through the adjustment effect,it is concluded that the level of household wealth has a negative regulating effect on household consumption of durable goods.The heterogeneity analysis found that the impact of property income from housing demolition compensation on consumption was more pronounced in households with lower educational level,rural areas,low financial availability and low financial literacy.In the investment part,the 2019 China Household Finance Survey Data(CHFS)was used for empirical testing,and the propensity score matching method(PSM)was used to verify the difference in risk asset investment between demolished households and non-demolished households,and then the OLS model was used to empirically analyze the impact of property income from housing demolition compensation on household investment.Empirical results show that house demolition significantly promotes household participation in investment in risky assets.Using the moderating effect,financial availability can regulate the participation of demolition households in risky asset investments.The heterogeneity analysis found that housing demolition compensation had a more significant impact on households with low financial literacy and household participation in risky asset investment in urban and developed areas.Based on the research conclusions,corresponding financial advice is put forward for families,and policy suggestions are put forward for governments,banks and other financial institutions,so as to provide reference for the state and government to solve the problem of property income caused by house demolition in the process of urbanization.