How Does Intergenerational Transmission Of House Property Affect Consumption?Evidence From Chinese Household Micro Data

Intergenerational transmission is one of the most important characteristics of house property.Many people will purchase more than one house and transmit the house to their child in the future.Then how does house property intergenerational transmission affects the consumption of elder generation and son generation?Firstly,the paper set up a theoretical model which includes the intergenerational transmission factor.Author came up with the proposition on the basis of optimal solution.Besides,the paper analyzed the current situation of Chinese family house property and introduced influencing factors of consumption,especially intergenerational transmission.Last but not least,the paper used empirical analysis method to testify how the intergenerational transmission of house property will affect the consuming behavior of the elder generation(the generation after 50s and 60s)and the son generation(the generation after 80s).The results indicate that intergenerational transmission of house property has significant Crowing-out effect on the elder generation's current consumption structure.However,the factors like the educational level and social status(profession,household income,etc.)have positive impact on consumption which will counteract the Crowing-out effect to a certain extent.These factors also have an active influence on the elder generation's consumption expectation.For the son generation,the house property allocation and its intergenerational transmission don't have significant effect on current consumption structure.The house property allocation of the son generation with low income and low educational level will generate negative impact on the consumption expectation.