The Influence Of Household Financialization Degree On Household Consumption

The Communist Party of China’s 20 th National Congress said that,from the point of view of revenue,we should start from two points of view:"total amount" and "structure",improve people’s income through various ways,and continuously strengthen the basic position of consumption.Therefore,the discussion of the main factors affecting the consumption of Chinese residents has practical value and decision-making value under the current background.By studying the final consumption rate of the last ten years,the author finds that it has shown a trend of first increasing and then decreasing.Meanwhile,the idea of"household financialisation" has been included in a report by the National Development Research Centre think-tank.The report suggested that the country should shift its policy focus to "improving the quality of household wealth accumulation" and "preventing financial risks"as soon as possible,so as to promote the optimization of household wealth in both the aggregate and structural dimensions and stimulate consumption.For this reason,the paper combines "family financialization" and "family consumption",which have emerged and developed rapidly in recent years,and studies the correlation between the two.Based on the data of CFPS2014,CFPS2016 and CFPS2018 tracking surveys,this paper verifies the relationship between household financialization and household consumption.23,852 samples are selected for empirical analysis.The panel fixed effect model is used to study the level and structure of household financialization.This paper studies the influence of the distribution of household financial assets and the distribution of risk finance assets on consumption,and the results are more credible.Based on the baseline regression,this paper compares the impact of family financialization on various types of consumption:the panel quantile model is established to test the impact of family financialization on different consumption levels,and the categories of consumption are classified into three categories and eight categories.Finally,the regional heterogeneity test is conducted to comprehensively disassemble and subdivide family consumption.Finally,we explore the conduction mechanism and action mechanism of family financialization.In order to ensure the credibility of the empirical results,this paper also uses various methods to carry out relatively complete endogeneity test and robustness test in the study on the influence of household financialization degree on household consumption.It is found that as the share of the family’s financial assets is rising,the consumer’s consumption is also rising,which is positively influenced by the ratio of financial assets.With the growth of the share of risk finance assets in the financial assets,the consumer’s consumption is also rising.Moreover,the percentage of the household’s risk capital has an active influence on the household’s consumption.By dividing consumption,we can see that the degree of household financialization has a positive and significant impact on various consumption levels of residents in the nine fractions.The improvement of the level of family financialization has obvious positive effects to varying degrees in eight aspects,such as the improvement of family food consumption and health care consumption.The improvement of family financialization level will also have different degrees of positive influence on residents’subsistence consumption,development consumption and enjoyment consumption.Moreover,it is proved that the financial management of the family can help to increase the family’s actual income and alleviate the financial pressure of the family.This study offers a foundation for improving the financial status of family members in order to improve their consumption,and enrich the financial factors affecting the micro level of household consumption.In the end,based on these findings,we put forward some strategies as follows:Firstly,it is necessary to set up a high efficiency and steady finance market,which will make the domestic finance property more fully exert the function of consuming.Secondly,it is necessary to raise the ratio of present property in a rational way,so as to direct the diversification of the family property distribution in China.Third,we should take steady financial input as the guidance,expand the way of increasing residents’ income.Fourth,to properly reduce the family credit application standard,ease the family credit constraints depend on relaxing the normal way of personal loans.Fifth,increase the popularization of residents’ financial knowledge,so as to guide residents’ rational choice in asset allocation.Sixth,standardize and optimize financial institutions so that they can better meet the needs of personal finance.