Research On Wealth Effect Of Financial Assets And Housing Assets Of China’s Urban Residents

Investment,export and consumption are three factors stimulating economic growth.However, Our exports had been severely affected since the global financial crisis in2008,and high demand for investment causes inflation,so expanding domestic demand is the most important thing at present.According to the traditional financial theory,wealth can affect consumption expenditures.Housing assets and financial assets are important parts of resident assets,so studying the affect of the price fluctuation of house and financial assets to consumption expenditures is meanful to expand domestic demand.According to the above thesis,the article, beginning with a summary of previous theories and analyses of the wealth effect, review traditional financial theory and behavioral financial theory and sort transminssion mechanism of wealth effect.Then estimating the wealth effect with the model based on the consumption stickness coefficient.Grounded upon the seasonal data from the first season of1999to the forth season of2011,we applied quantitative analysis to study the relationship of housing assets and financial assets and consumption.we get the conclusion that:urban residents have high consumption stickiness coefficient of0.6007;the short-run MPC of housing assets is fairly weak,while the long-run MPC is relatively high;the short-run MPC of financial assets is negative,but not statistically significant; disposable income contributes the most to urban residents consumption.At last,summarize based on the theory and empirical results,proposing relevant policy suggestion.