Based on the Purpose of Expanding Consumption Demand to Study the Wealth Effect of Chinese Household Assets

摘要

The slower growth Of consumption demand is one of the outstanding problems that restrict the development of Chinese economy persistently. If we want to promote the growth of Chinese macroeconomic persistently and stably, we must attach importance to the role of consumption demand. The question of how to expand consumption demand, if we study from the western economic theory, generally we should study the form of consumption function equation firstly. The classical consumption function describes consumption expenditure and income. But this paper makes the household assets as the important factor that influence consumption expenditure, namely introduce the assets factor into consumption equation. By using modern dynamic econometrics methods, measuring the coefficient of assets in the consumption function objectively and accurately, we are able to see clearly that the assets play an important role in expanding consumption demand. The conclusion of this article is propitious to promote the in-depth study of Chinese consumption theory, and it could also significantly broaden the policy ideas of how to stimulate Chinese consumption demand.