Study Of Chinese Residents Of The Wealth Effect

During three decade, every aspect of our society has undergone tremendous changes, especially in the economic take-off and continuous increasing in productivity, so that living standards have undergone enormous changes.Family wealth accumulated continuesly and the ways assets are held are more and more diversified. The Chinese Government consider "promote domestic demand" as an important means to deal with economic crisis in 2007. Through the studies the impact of family assets,particularly savings and housing assets, on consumption, this paper wants to provide some evidence for the future development.This paper estimates the the wealth effect in residants and finds:(1)disposable income is the most important factor for consumption, and unemployment also have an significant impact on consumption; (2) the wealth effect of savings is between 0.054 to 0.059. That means, when savings increases by 1%,residents spending will increase by 0.054%; (3)From a national perspective, the wealth effect of housing assets is between-0.009 to-0.005.That is, with the increasing in the value of housing assets, the residents will reduce consumption. The wealth effect of housing assets is also negative in central and western regions. Only in the east, the wealth effect of housing assets is positive and between 0.013 and 0.016;...