Research On The Influence Of Housing Wealth On Household Consumption Of Urban In China

The report to the 20 th National Congress of the Communist Party of China put forward that we should adhere to the theme of promoting high-quality development,integrate the implementation of expanding domestic demand with deepening supply-side structural reform,accelerate the domestic and international cycles,and build a modernized economic system.This further clarified the importance of expanding domestic demand in promoting economic growth.At the same time,housing prices continue to rise,the housing wealth of urban residents is increasing,and the influence on family consumption is gradually increasing.Therefore,under the policy background of expanding domestic demand,the role of housing wealth on family consumption is of great significance.This article is based on the data from the China Household Finance Survey(CHFS)in2013,2015,2017,and 2019,to study the impact of housing wealth on urban household consumption.Firstly,a panel fixed-effects model is constructed to study the impact of housing wealth on total household consumption and consumption structure.Then,different household samples are distinguished to analyze the heterogeneity of housing wealth on residents’ consumption from the perspectives of household income,head of household age,and the proportion of housing in household assets.Finally,the impact pathways of housing wealth on residents’ consumption are studied.This article distinguishes urban households with different numbers of housing assets and per capita housing area to test the direct wealth effect channel.Regarding the impact mechanisms of liquidity constraints and precautionary savings,household liquidity constraints and household financial leverage are selected as threshold variables,and a panel threshold model is constructed for testing purposes.It has a significant wealth effect and can promote household consumption,and having higher housing wealth significantly improves the household consumption upgrade index and improves the household consumption structure;second,on the basis of considering family heterogeneity,the housing wealth effect still exists,for families grouped according to income,the difference is not very large,but the family wealth effect of the low-income group is more obvious;as the age of the household head increases,the housing wealth effect presents an inverted U-shaped life cycle characteristic,and the consumption propensity of middle-aged families is higher;The wealth effect of housing is more pronounced in households where the proportion of real estate in household assets is low.Third,there is a net wealth effect on household consumption by Chinese households’ housing wealth.After examining the liquidity constraints and precautionary savings channels,it is found that Chinese households are not significantly affected by the precautionary savings channels,but more through the liquidity constraints channels.Based on the above conclusions,this thesis puts forward suggestions for different objects:first,for government departments,efforts should be made to narrow the wealth gap and improve the social welfare system;second,for real estate developers,stabilize housing prices and adhere to the principle of "housing,not speculating";Third,for urban residents,guide residents to establish a correct consumption concept and rationally allocate family assets.