Credit and Households’ Happiness in China
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| Title | Credit and Households’ Happiness in China
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| Author | Yin Zhichao and Zhang Haodong |
| Organization | (1. Capital University of Economics and Business；Henan University of Economics and Law |
| Email | yzc@cueb.edu.cn；zhdhjszay@sina.cn |
| Key Words | Happiness; Credit Demand; Credit Accessibility; Credit Constraints |
| Abstract | Based on China Household Finance Survey data in 2013, by choosing Instrumental Variable and using Maximum Likelihood estimation, this paper finds households’ credit demand can significantly reduce the probability of households’ happiness. Further, this paper finds formal credit accessibility can significantly improve households’ happiness and informal credit accessibility can significantly reduce households’ happiness. In addition, this paper finds households’ credit constraints can significantly reduce the probability of households’ happiness. For discouraged borrowers and refused applicants, the probability of happiness is significantly reduced. The policy implication is that developing formal finance, improving formal finance service, releasing credit constraints, and improving formal credit accessibility can increase households’ happiness. Additionally, promoting informal finance and lowering transaction costs can improve households’ well-being and promote social harmony. |
| Serial Number | WP1281 |
| Time | 2018-06-28 |
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