A Study On The Influence Of Family Endowment On Conspicuous Consumption Of Urban And Rural Residents In China

Since 21st Century,the standard of living of residents in our country has entered a well-off level,and the consumption level and consumption quality of residents in our country have been greatly improved.Successful upgrading of consumption structure of residents is very important to stable operation of China’s economy.In this context,we make an empirical study on the relationship between family endowment and conspicuous consumption of urban and rural households in China.Based on the permanent income hypothesis,the wealth effect theory,reference group theory and signaling model,we analyze the economic mechanism through which economic capital,human capital and social capital of family exert influence on conspicuous consumption of the family.After this,we put forward the theoretical assumptions about the relationship between family endowment and conspicuous consumption.We then empirically test these hypotheses using survey data from China Family Panel Studies(CFPS).The conclusions are as follows:First,conspicuous consumption of the family has a strong positive correlation with economic capital family owned and conspicuous consumption of rural residents are less affected by economic capital family owned,which can be explained by different information structure between rural area and urban area.Second,after excluding the influence of economic capital,human capital still has a significant positive effect on the conspicuous consumption of family.Third,the greater the social network of the family,the more abundant social capital,the more obvious the degree of information asymmetry in the process of social communication,the greater the demand for conspicuous consumption.There is no significant difference between the influence of original and the integrated social capital on the conspicuous consumption of rural residents and urban residents.