The Impact Of Housing Liabilities On Residents' Consumption

This paper analyzes the impact of housing liabilities on Chinese household consumption by using the data of Chinese household financial survey,the data collected by China Family Finance and Research Center in Southwestern University of Finance and Economics in 2011.Through empirical analysis,this paper attempts to answer two questions: First,what is the impact and impact of housing debt on the consumption of Chinese households? Second,which families in China,consumer spending more vulnerable to the impact of housing liabilities,the impact of different families there is a difference between the degree?The background and significance of these two issues are as follows: LC-PIH theory that the residents of the consumer decision-making depends on the permanent income of the individual life,the current income is insufficient when the residents through the credit market to smooth income,the use of asset intertemporal configuration to achieve Household consumption maximization.But this conclusion is not consistent with many cases in reality,and the rationality of the life cycle-permanent income theory has been questioned by many scholars.In order to further expand and perfect the life cycle-theory of lasting income,scholars have explained the phenomenon that residents' actual consumption is lower than optimal consumption from credit constraints,income uncertainty and so on.Among them,the credit constraint has become the mainstream argument to explain the problem.With the continuous development of China's reform and opening up,the level of consumption has been greatly improved,the credit consumer market,especially the housing credit market has gradually flourished,housing loans is an important part of China's consumer credit in China's credit market Occupy an absolute dominant position.However,due to the complexity of the relationship between credit constraints and household consumption,scholars still have a lot of controversy in countries that should encourage financial deepening or take financial restraint.Therefore,this paper to housing debt as the starting point,the use of China's family micro-data once again test the impact of housing liabilities on consumption,follow-up research and consumption theory development has a certain theoretical significance.Through the study of the existing literature,we find that the empirical conclusions about the impact of credit constraints on household consumption are different due to regional differences and stages of development.It is also a conclusion that consumer credit can promote consumption growth.The research of domestic related literature is limited by the lack of micro-data,and the results are mostly based on macroscopic statistical data.The results of empirical research on micro-statistics are from the perspective of housing liabilities.The This paper uses the 2011 China family financial survey data to study the impact of China 's housing liabilities on the consumption of residents,from the micro-point of view of the existing literature to do some supplementary research.This paper makes an empirical analysis on the relationship between housing liabilities and household consumption by CHFS China Household Financial Survey in 2011.From the empirical results show that the Chinese household consumption and housing liabilities have a significant positive correlation.In addition,the analysis of consumption of household goods into durable goods and nondurable goods found that housing liabilities had a significant impact on consumption of nondurable goods,while the impact on durable goods consumption was not significant.In the loan channel,bank loans and non-bank loans compared to its stimulating effect on consumption stronger.After concluding the conclusion that housing liabilities have obvious stimulating effect on the consumption of our residents,we have grouped the family characteristics to analyze the heterogeneity of housing liabilities on different groups.It is found that both housing and rural areas have significant stimulating effect on consumption,but the elasticity coefficient of housing liabilities in urban areas is lower than that in rural areas.In the income group,the impact of housing liabilities on the various income groups are significant.Through the previous empirical analysis,we propose the following four suggestions: First,given the significant effect of housing liabilities,especially bank loans on the promotion of household consumption levels,the government should relax the unnecessary control of bank housing credit as a whole,for consumer financeDevelopment to create good conditions to promote ordinary residents can have more opportunities to use financial lending,a deeper degree of participation in consumer finance.Second,we should further develop rural finance and create the basic conditions for financial development in rural areas.The government should do a good job in related financial infrastructure to facilitate farmers to participate more and more in financial lending.Third,the government should pay more attention to the low-income class in the policy on housing loans.Finally,to encourage consumer financial market innovation,rich consumer financial products.Give full play to consumer credit to promote the role of consumer spending.