The Channel and Test on Impacts of Consumer Credit to Urban Residents Consumption Behavior
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| Title | The Channel and Test on Impacts of Consumer Credit to Urban Residents Consumption Behavior
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| Author | Zang xuheng and Li yanqiao |
| Organization | Institute of Consumption and Developing SDU, School of Economics SDU |
| Email | okhere2006@126.com |
| Key Words | Consumer Credit; Consumer Behavior; Liquidity Constraint; Panel Data |
| Abstract | The channels of impacts of consumer credit to urban residents consumption behavior are summarized under the framework of consumption model with liquidity constraints and precautionary savings, and tests the channels by using China provincial panel data of the period from 2004 to 2009. The results show that: generally speaking, consumer credit promotes the current consumption of urban residents; from the point of channels, the current consumer credit mainly remits the residents’ current liquidity constraints and promotes the consumption of durable goods, but the savings pressure of urban residents hasn’t been reduced and the function of consumption insurance hasn’t been played effectively. This paper argues that the too high cost of large rigid expenditure and uncertainty of future income and expenditure are the main factors that lead to the weak effect of consumer credit to urban residents’ consumption. |
| Serial Number | WP194 |
| Time | 2012-02-15 |
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