Research on the Effect of Financial Asset Allocation on Household Consumption:Based on the Perspective of Wealth Effect

Abstract

Based on the perspective of wealth effect, this paper uses the data of China Household Finance Survey to explore the effect of household financial asset allocation on consumption.This paper found that there is a wealth effect between household financial asset allocation and consumption,that is,household financial assets have an impact on consumption through the change of holding level.And when we used the instrumental variable to deal with the endogenous problem of variables, the above conclusion is still valid.Similarly,After replacing the empirical model and database,the empirical results are also robust and significant.This paper is of great significance to promote households to allocate more financial assets and release consumption vitality.