Author(s)

Yu Pan, Huimin Xing

Corresponding Author

Yu Pan

Abstract

China’s economy is developing rapidly, and the consumption structure is being transformed and upgraded. The wealth effect of family assets has brought more and more attention. However, the previous studies did not reach to a consistent conclusion. This paper selects the data of 2012 China Household Finance Survey (CHFS), and makes an empirical study on the wealth effect of housing assets and financial assets of Chinese residents based on the LC-PIH model, further discussing the difference of wealth effect of different groups. The analysis shows that household housing assets and financial assets are positively related to the impact of consumption, and the factors such as household age, income and region have different effects on asset wealth. This paper makes up for the lack of sample size caused by the use of macro data when researching household finance. And this paper is an extended application of CHFS database.

Keywords

Residents Family; Financial Assets; Wealth Effect; Consumption