The Impact of Household Asset Allocation on the Heterogeneity of Residents' Consumption Based on CFPS Micro Data

Abstract

In response to the impact of household asset allocation on residents' consumption heterogeneity, this article first uses the China Family Panel Studies (CFPS) to conduct preliminary analysis and statistics, and selects some control variables. Secondly, the instrumental variable method is used to study the total consumer expenditure of residents and determine the feasibility of controlling variables. Finally, based on this, the instrumental variable method is used to study the secondary and tertiary indicators of asset allocation and the secondary indicators of consumer expenditure, and the model is tested to determine the impact of household asset allocation types on residents' heterogeneous consumption. The research draws the following conclusions: (1) The average marginal utility of household physical asset holdings on consumption is slightly greater than the marginal utility of financial assets. (2) Household cash and deposit holdings have a more obvious marginal utility on consumption than their holdings of financial products. (3) The positive impact of the total purchase price of a family car on medical, entertainment, and home expenses is significantly greater than its impact on clothing, food, housing, and transportation expenses.