A Study On The Consumption Effect Of Housing From The Perspective Of Residents’ Income Difference

In the study of household consumption,the consumption effect of housing has been concerned,but no consensus has been reached in the macro research.Most of the existing macro studies use panel data model to estimate the consumption effect of housing through the direct influence coefficient of housing prices.According to the independence assumption among explanatory variables in the panel data model,when household assets are related to income,the coefficient estimation is biased,which cannot fully reflect the impact of housing price changes on total household consumption expenditure,and may lead to inconsistent research conclusions.From the perspective of residents’ income difference,this thesis studies the consumption effect of housing through the adequacy analysis of the direct influence coefficient,which mainly includes the following contents.(1)Adequacy test of direct influence coefficient.In this part,by building a simple decomposition model,the total consumer expenditure is divided into two parts which represent the direct impact of housing price and the interactive impact of income difference.Then,the moderated mediation effect model was used to test the significance of the two parts from the perspective of explanatory degree.The results show that the interaction effect is significant,but the direct effect is not,indicating that residents’ income difference has an important impact on the consumption effect,and the direct effect coefficient is insufficient.(2)Mechanism analysis of the consumption effect of housing.Based on the model deduction of cross-section decomposition model,this thesis obtains the consumption expenditure function and investment level function of residents under different choices.Then,based on the expression,the specific effects faced by residents are identified,and the relationship between the initial asset and the optimal decision is clarified.It is found that the wealth effect comes from the investment attributes of housing,and the crowding out effect comes from the combined influence of housing market constraints and housing exclusivity.(3)Analysis of the function channel and the reexamination of housing.Through the sum of individual consumption expenditure,it is found that the consumption effect of housing consists of unit consumption effect and wealth structure.The former only depends on the growth of housing prices,while the latter represents the impact of housing price changes on residents’ investment decisions.The theoretical analysis shows that when there is income difference between groups,the interaction effect dependent on the income difference is the main channel of housing consumption effect.The final empirical analysis shows that from 2000 to 2019,the rise of housing prices in China has a weak wealth effect in the direct influence,but has a significant crowding out effect in the interactive influence which based on income difference,and inhibits the growth of consumer expenditure.The above research shows that when household assets and income are related,income difference information is an important part of the channel of consumption effect.In the panel data model,the consumption effect of housing can be fully estimated only through the interaction coefficient between housing price and income difference.