A Study On The Health Effects Of Household Debt

Family finance is an independent research field in parallel with corporate finance and macro finance.Family finance refers to how families use assets and liabilities to maximize their financial returns.At present,China’s household finance develops rapidly,among which household debt,an important part of household finance,is rising rapidly these years.In the increasingly fierce international competition,China’s economic transformation is more and more needs of the healthy power under the background of the era of big,and the growing amount of household debt in our country,the status quo of household debt structure changing,in-depth analysis objectively the health effects of different family debt it’s very necessity,in order to be able to decision makers for health and family financial policy to provide some reference,to promote the health level of residents in our country and promote healthy steady economic growth in China.This paper uses CFPS data from the 2016 Peking University survey to empirically analyze the impact of household debt on health.Through empirical analysis,this paper aims to answer three questions: first,whether and how household debt affects health at present?Second,how do different sources of debt and mortgages affect health and how are the effects different? Third,will household debt have different effects on different groups? In order to answer the above three questions,this paper puts forward three research hypotheses from the perspectives of substitution effect,income effect and diminishing law of marginal utility by using multiple linear regression model.After introducing the square term of debt,it is found that excessive debt will have a negative impact on health.Significant mortgage on health has a positive impact;Compared with rural areas,urban areas suffer more positive effects of household debt on health and less negative effects.Family debt has both positive and negative effects on health,of which the positive effect is greater than the negative effect.In the short term,family debt has a positive effect on health through increasing leisure investment and increasing pressure.In the short term,increasing health investment has a negative effect on health.Bank credit in household debt will have a positive effect on family health,while private lending will have a negative effect on health,while family loan will have a positive effect on health,but it is not significant.Based on the research conclusions,this paper gives the following policy Suggestions:first,we should lower the threshold for bank credit to enter the household and increase bank credit support.Focus on those rural,low-income households,giving them greater access to bank credit,improving their human capital and health investments.Second,we will more fully regulate private lending and improve the legal system for private lending.At the same time,we will give more support to small loan companies and private financial organizations,and encourage them to give full play to the supplementary role of bank credit.Third,we will encourage households to take on appropriate debt and optimize the debt structure.At the same time,we should optimize our own debt structure and control the household asset-liability ratio at a reasonable level.Fourth,we will increase support for rural finance and further narrow the gap between urban and rural areas.Rural families should make full use of the national policies on inclusive finance and targeted financial assistance for poverty alleviation,change their financial thinking,and take the initiative to contact financial institutions to increase their income and improve their health in rural areas.