THE IMPACT OF HOUSING WEALTH ON HOUSEHOLD CONSUMPTION IN CHINESE URBAN HOUSEHOLDS
Chen Lupin
Keywords:
Housing wealth, households' consumption behavior, linear mixed model estimation, Analysis of Variance (ANOVA), regression analysis ,
Abstract
Housing is not only household consumer goods, but also an important asset of the family. In recent years, China's household housing wealth has been increasing with the growth of real estate prices. It has been extensively studied how housing wealth affects households' consumption behavior, but less is known about the varied impacts of different wealth sources on the consumption patterns of various economic classes. This study examined the degree to which housing wealth influences the consumption patterns of persons of different economic status while accounting for geographical variations. Using data from the 2011–2019, China Household Finance Survey, we used the linear mixed model estimation, Analysis of Variance (ANOVA) and regression analysis. The findings indicated that there is a significant urban-rural regional gap across China's eastern, middle, and western areas. Although it has a little impact on rural households' consumption, housing wealth has a big positive impact on urban households' consumption. Financial wealth and pension may help to offset some of the spending imbalances brought on by annual family income. Poor households are able to utilize more medical and health-care facilities because to higher pensions. To commence with, for the older population that is particularly in need of care, authorities must strengthen the social scheme.