The Theoretical And Empirical Research On Consumer Credit Of China Household

With the extent of opening continuously improving and culture communicationbetween China and the Western gradually deepening, concept of consumption bycredit is increasingly getting received by China Household; and what’s more, with thedevelopment of financial market and the speeding-up of monetization reform processin housing and other fields, the kinds of consumer credit is continuously increasing,the coverage gradually expanding, and more and more households are gettinginvolved in consumer credit activity. The international experience shows thatconsumer credit has had a long history in western countries, which has played asignificant role in consumption promotion of household. In addition, It is also animportant measuring standard which embodies whether one country’s financialsystem is perfect and the extent of financial socialization that the extent of consumercredit market development and community participation. It is important practicalsignificance in accelerating the future development of consumer credit market inChina and stimulating household consumption that absorbing historical experience ofconsumer credit market in western developed countries and understanding correctlythe development status of consumer credit market in China. In view of this, based oncurrent status of consumer credit market in China, absorbed in experience of USA andJapan, taking China household as the main object, this paper analyzed and discussedthe characteristics of consumer credit and the impact on the whole economy, in orderto provide policy basis for future development of consumer credit market.In section of theoretical analysis, based on the absorption of existing research,starting from the process of money evolution, the paper analyzed the occurrence ofperson’s consumer credit behavior and the impact on personal consumption indifferent money form. The analysis showed that, during the period of barter andcommodity money, consumer credit could promote personal consumption in currentperiod and enhance the total utility level of two periods. With the barter periodentering the period of commodity money, social productive forces and moral levelcontinuously improving, institutional security on consumer credit behavior constantly enhancing, the probability of occurrence of consumer behavior is gradually increasing.Under the condition of credit money, the more perfect the consumer credit market is,the more current consumption and inter-temporal consumption utility level will bepromoted.After investigating the consumer credit market and household development ofUSA and Japan respectively, it is found that both markets has developed maturely,and existed many kinds of financial organization forms and consumer credit service,especially the universal existence of consumer finance company which provides greatconvenience for households enjoying financial service. The households in bothcountries recognized consumer finance company greatly and participate extensively.In addition, both governments have constructed relatively perfect supervision system,which could protect consumers benefit practically. At the same time, it is alsosignificant that the development of consumer credit market could promoteconsumption and economy development.Compared with USA and Japan, the development of consumer credit market inChina is very slow, which is performed as small market scale, less financialorganization and single type of consumer credit products. The background of formalappearance of consumer credit market in China is the process of monetization reformin the fields of housing, education and others. The implementation of major policiesis very important for the change of economy behavior in household, so policypromoting effect is very significant in consumer credit development in China. Withthe concept of consumer credit continuously deepening, consumer credit marketbegan to develop fast in recent years. Modern financial organization forms such asconsumer finance company has entered China, which provided increasingly moreconsumer credit service and are more close to life needs of household. At the sametime, as the representative consumers, young people is gradually becoming the maintarget client groups.In section of empirical analysis, first, this paper uses family survey data toanalyze the consumer credit behavior empirically. The results shows that housingmortgage loan affects household consumption structure significantly: the expenditureproportion in consumption with low demand rigidity is reduced by “Push-out Effect”; and the consumption which is “pushed out” could be made up in part by“Compensation Effect”, which is that the loan stimulates household to increaseincome for compensating consumption. At the same time, household individualcharacteristics, including consumption structure, age structure, income level andfamily region.etc, affect whether consumer credit behavior occurred significantly.Second, this paper uses macro economy data to test the macro economy effect causedby development of consumer credit. The results shows that with the more than10years development of consumer credit, consumer credit affects consumptionpromotion significantly. In future, consumer credit market in China will get a broaderprospect.Previous chapters show that the background of formal appearance of consumercredit market in China is the process of monetization reform in the fields of housing,education and others, so policy promoting effect is very significant in consumer creditdevelopment. In future periods, faced by current status of household consumer credit,consumer credit market should be continued to develop greatly, at the same time,economic policies which benefits people’s livelihood from government should becarrying out during a long period of time in order to release pressures and potentialconsumption forces. And what’s more, it should be continued that advanced financialorganization forms such as consumer finance company are in operation testing inorder to enrich and improve our current financial system, and be more close topeople’s daily life needs, which will guarantee the real financial service enjoy ofconvenience on household. In addition, with the scale and coverage area of consumercredit market expanding, financial education on consumer should be strengthened,and supervision and protection on consumer finance service should be improvedgradually. Thus the capability of household consumption could be excavated fromevery aspect and the fixed target on expand domestic market demand will beachieved.