Chinese Household Consumption Research Articles

Does digital finance promote household consumption upgrading? An analysis based on data from the China family panel studies

The relationship between digital financial development and household consumption has drawn much attention from both academia and policymakers. Previous studies have documented that digital financial development fosters the growth of household consumption expenditure, but little attention is paid to its impact on household consumption upgrading. Using China Family Panel Studies data and Digital Financial Inclusion Index, we examine the impact of digital financial development on Chinese household consumption structure. We find that the development of digital finance promotes household consumption upgrading. Liquidity constraints, payment convenience, investment efficiency and household risk-hedging ability are proven to be important channels in the mechanism. Our findings are robust to the dynamic GMM estimation and instrumental variable analysis. It implies that the government should devote more efforts to developing digital finance to promote consumption upgrading, and hence economic growth.

Retracted: Analysis of Chinese Household Consumption Expenditure Structure System Based on Factors and Clustering Algorithms

Retracted: Analysis of Chinese Household Consumption Expenditure Structure System Based on Factors and Clustering Algorithms

Retracted] Analysis of Chinese Household Consumption Expenditure Structure System Based on Factors and Clustering Algorithms

In recent years, with the gradual implementation of the central government’s policy of expanding domestic demand, the living standards of urban residents have been greatly improved. With the increasing level of urban living consumption, residents’ living consumption situation has attracted more attention and attention. In order to further increase the consumption income of households, it is necessary to conduct corresponding analysis on households in various regions. Based on SPSS statistical simulation software, this paper uses factor analysis and clustering methods often used in modern multivariate economic statistical analysis to establish multivariate statistical models and calculate and establish various analysis models suitable for my country’s household consumption expenditure structure (2020) and analyze the parameters, accordingly. From the perspectives of politics, economy, geography, etc., this paper reveals the changes in energy consumption in China’s family and social life and its possible implied related information, laws, directions, and the overall development level of society. Through empirical analysis and research, this paper can finally conclude that the current consumption expenditure structure of Chinese households is affected by a combination of factors such as national policies, economic development and technical conditions, and geographical environment characteristics, and the effect is different in different cities.

The New Economic Era Analysis of the Structure System of Chinese Household Consumption Expenditure Based on the ELES Model.

In recent years, the new economy has entered a phase of rapid development and upgrading China's service consumption is driving the continuous optimization of the population's consumption structure. To realize the rationalization of the Chinese household consumption structure, the ELES model is used to analyze the structure system of Chinese household consumption expenditure. This article constructs the ELES model, divides the types of Chinese household consumption expenditure structure systems, establishes consumption expenditure function, analyzes the influencing factors of the consumption expenditure structure system, and obtains the analysis results from static and dynamic aspects. Based on the statistics of Chinese household consumption expenditure data in recent years, this article obtains the analysis results of the consumption expenditure structure system: the basic consumption demand and marginal consumption tendency of food are in the first place, and the consumption expenditure structure system has gradually changed into the development-type and enjoyment-type consumption mode. Through increasing the income of rural residents, guiding reasonable consumption concept, optimizing consumption environment, and so on, we can promote the proposal and implementation of the optimization of China's household consumption expenditure structure system to improve the rationalization of China's household consumption structure system.

Impact of Catastrophic Health Expenditures on Chinese Household Consumption.

China has built a social medical insurance system that covers the entire population so as to reduce the impact of diseases on individuals and families. Although the decline in the incidence of catastrophic health expenditures (CHEs) in China is encouraging, this issue remains important. On the basis of considering selectivity bias and heterogeneity, we applied propensity score matching (PSM) to analyze the 2018 data from the China Family Panel Studies. We assigned CHE households and non-CHE households to the treatment group and the control group, respectively, and used non-random data to simulate a randomized trial to investigate the impact of CHE on household consumption in China. The results of this study indicate that, when the threshold is set at 40%, the consumption of households experiencing CHEs (CHE household) is significantly lower than that of households not experiencing CHEs (non-CHE households) and that CHEs have a significant negative impact on other household consumption and a significant impact on the household property and debt. This effect still exists when the threshold is set lower, with household essential consumption most affected. The occurrence of CHEs leads to a reduction in household consumption and a significantly worsening financial situation for the CHE households, impacting the basic quality of life of the families. Therefore, it is necessary to further reform the medical and health system to reduce the high medical expenses.

The transmission mechanism of household lifestyle to energy consumption from the input-output subsystem perspective: China as an example

In recent years, China's rapid economic development and steady growth of household consumption have contributed to the continuous growth of energy consumption. In addition to considering direct household energy consumption, the indirect effects of people's consumption activities on energy consumption in other productive sectors can't be ignored. According to the input-output analysis framework and consumer lifestyle analysis, this paper mainly studies the direct and indirect consumption of energy by Chinese household consumption ways and the relationship between energy structure and lifestyle. From the perspective of structural analysis, the input-output subsystem model (scale component, own internal component, feed-back component and spillover component) is used to analyze the energy supply and demand relations among 36 sectors of the national economy related to the lives of household in 2012 and 2017, revealing the change trend and transmission mechanism. This paper also focuses on the impact of household consumption ways on energy consumption of industrial sector and changing consumer lifestyles on energy saving, meanwhile it also forecasts China's future household energy consumption under four scenarios. The results show that in 2012 and 2017, total consumption of energy which is influenced by household consumption ways in China is 28461.82 PJ and 44759.96 PJ, respectively, accounting for 26.9% and 34.1% of total consumption of final energy. The indirect energy consumption is 1.3 times and 1.65 times of direct, respectively. The coal consumption accounts for the majority of indirect energy consumption. The smelting and pressing of ferrous metals is the industrial sector which is most affected by the household consumption ways. The scale component, own internal component, feed-back component and spillover component has accounted for 18.5%, 1.3%, 0.1% and 80.0%, from 17.5%, 2.0%, 0.2% and 80.3% of energy consumption in total, respectively. Under the four scenario development modes (NN, NA, LN and LA), it is predicted that the indirect energy consumption in household life in 2025 is 43740.56PJ, 34922.93PJ, 39149.37PJ and 31257.28PJ, respectively. The implementation of low-carbon consumption mode and the accelerated decline of energy intensity will help to reduce energy consumption.

Access to the Internet and the Chinese household consumption structure: Based on IV regression and PSM analysis

Based on the data of China’s Household Finance Survey (CHFS) in 2017 consisting of 38230 samples across China, this paper uses the instrument variable (IV) regression method and the propensity score matching (PSM) technique to study the influence of access to the Internet on the household consumption structure. The conclusions are as follows: first, access to the Internet is conducive to the upgrading of the consumption structure of the residents. Increase of the income, assets and education level could upgrade the consumption structure. Second, people who do not use the Internet will upgrade the consumption structure if they use the Internet, but the upgrading degree of the consumption structure is limited by the income level. Third, from the regional perspective, the Internet can promote the upgrading of consumption structure in the eastern and western regions of China, but it has no significant effect on the consumption structure in the central and northeast regions.

Pandemic, Mobile Payment, and Household Consumption: Micro-Evidence from China

ABSTRACT The novel coronavirus disease (COVID-19) outbreak has significantly affected many lives, as indicated by widespread lockdowns and restrictions. This study investigates the impact of COVID-19 on Chinese household consumption. It employs the China Household Finance Survey (CHFS) data and finds that there was a significant decline in household consumption during the outbreak period. Further heterogeneity analysis shows that the pandemic suppresses consumption in urban households; rural households are, however, less affected. Moreover, mobile payment promotes urban household consumption during the pandemic, while rural households remain unaffected.

Will the Chinese economy be more volatile in the future? Insights from urban household survey data

PurposeConsumption volatility is a key source of economic growth volatility; thus, it is an important factor in designing macroeconomic policy. The purpose of this paper is to investigate the factors that determine household consumption volatility, using urban household survey (UHS) data over the period 2002–2009 in 18 provinces in China.Design/methodology/approachBoth a traditional variance decomposition method and an advanced variance decomposition method are used.FindingsThe traditional variance decomposition method suggests that heterogeneity of consumption goods is the key to analyze consumption volatility in China. Consumption of transportation makes the highest aggregate contribution and per-unit volatility in consumption volatility, whereas consumption of food makes the second highest aggregate contribution and the lowest per-unit volatility. Further investigation with the advanced variance decomposition method, which allows the authors to capture intertemporal dynamics and cross-household differences simultaneously, finds that the main factor determining the consumption volatility in China is intertemporal dynamics, rather than cross-household differences.Research limitations/implicationsFuture research could fruitfully explore four issues. First, consumption upgrading has increased the volatility of China’s household consumption. How much will this affect economic growth in China under its “new normal” conditions, and how should the Chinese government respond? Second, differences between UHS data and aggregate data in the calculations of consumption risk sharing need to be investigated. Third, it is important to investigate the channels through which the Chinese government can enhance its ability to spread consumption risks and thus reduce consumer consumption volatility. Finally, further study could extend the current 18 provinces to a nation-wide sample and update the data beyond 2009 to estimate the impact of the global financial crisis.Practical implicationsThe results suggest that when policy makers design macroeconomic policies to smooth consumption volatility, they should consider heterogeneity in household consumption goods, regional disparity and intertemporal dynamics simultaneously. Well-managed volatility of Chinese household consumption can contribute to a stable economic growth in China and the world.Social implicationsWell-managed volatility of Chinese household consumption can contribute to a stable economic growth in China and the world.Originality/valueThis paper fills this gap by using China’s UHS data to assess consumption volatility from the perspectives of heterogeneity in household consumption goods, cross-household differences and intertemporal dynamics. We make three contributions to the literature. The first contribution of this paper consists of demonstrating the contributions of heterogeneity in household consumption goods to consumption volatility. The second contribution consists of using the advanced variance decomposition method proposed by Crucini and Telmer (2012). This decomposition methodology allows the authors to examine whether household consumption volatility is due to cross-household differences or intertemporal dynamics. The third contribution is that this paper takes Chinese residents’ consumption fluctuations as the starting point to analyze the impact of consumption fluctuations on the future trend of China’s economy.

Estimation and decomposition analysis of carbon emissions from the entire production cycle for Chinese household consumption

To guide households on implementing low-carbon consumption patterns, it is necessary to comprehensively measure carbon emissions of household consumption. This study expands the input-output relationship into the production-consumption relationship. It uses optimized data of the relationship between household consumption and production industry to calculate the entire production-side carbon emissions, including from capital formation, of Chinese household consumption, and uses LMDI model to analyze the factors affecting the growth of carbon emissions from Chinese household consumption. The results show that the carbon emissions of Chinese household consumption grew steadily from 2005 to 2015 almost 50% of carbon emissions were accounted for by high growth rates in residence consumption. Carbon emissions and growth rate of urban households’ consumption are significantly higher than the same figures for rural households. The carbon emissions intensity of all types of household consumption except residence and education has shown a downward trend. Household consumption structure and income level are the two main factors that promote the growth of household carbon emissions. Urbanization level and population size are secondary factors while household consumption carbon intensity is an important factor for curbing the growth of household consumption emissions. The study also proposes policy recommendations on how to improve the consumption structure of households, reduce the carbon intensity of household consumption, and curb the growth of carbon emissions from urban households.

Can Consumption Growth in China Keep Up as Investment Slows?

China’s exceptionally large share of investment in GDP has been widely noted. Rebalancing away from investment to consumption has been on China’s agenda to realize more sustainable growth. As investment growth slows, the question is whether consumption could replace investment as a growth engine. This paper empirically explores the drivers of Chinese household consumption and specifically tests whether investment has affected household consumption beyond the standard income channel. Our empirical results using both national- and provincial-level data suggest that investment has had a significant impact on household consumption beyond the household income channel. The effects are particularly strong in the post-Global Financial Crisis period, suggesting that the Chinese government’s stimulus measures, which aimed mostly at investment spending, have significantly affected households’ decision to consume both through households’ current and expected future income channel.

Chinese household consumption: how much is enough?

As per currently accepted methodology of national economic accounting, China’s household consumption rate is considered relatively low. This paper discusses the evolvement of China’s consumption over time. Employing two different measures of consumption, I compare the growth rate of China’s household consumption with the growth rates of China’s economy, of its disposable income and of other nations’ consumption. The results of the analysis demonstrate that China’s household consumption is growing vigorously in terms of both real growth rates of per capita household consumption and in total retail sales of consumer goods. Despite its current low level to GDP, China’s household consumption has experienced a significant growth in recent years.

Reestimating China’s Underestimated Consumption

China’s consumption rate is widely believed to be too low. In this paper, we show that official statistics have significantly underestimated Chinese household consumption. First, a lot of private consumption is paid for by companies but cannot be accounted for in official statistics. Second, housing consumption is underestimated because of the construction cost-based method. Third, and most important, high-income households are significantly underrepresented in the household surveys upon which household consumption statistics are based. We reestimate China’s household consumption by correcting for the latter two sources of underestimation. Our reestimation suggests that China’s final consumption expenditure is at least close to 60% of GDP, about 10 percentage points higher than the official figure.

Driving forces of indirect carbon emissions from household consumption in China: an input–output decomposition analysis

Human activities have become a major source of Earth’s climate change, which brings the rise of surface air temperature and subsurface ocean temperature. Therefore, promoting sustainable consumption and production patterns is imperative to minimize the use of natural resources and reduce emissions of pollutants. This study uses Economic Input–Output Life-Cycle Assessment method and structural decomposition model to identify the driving forces that influence the changes in carbon emissions from China’s residential consumption in the context of sustainable consumption. The findings of the study are as follows: (1) indirect carbon emissions from Chinese household consumption increase rapidly over time; (2) the largest carbon dioxide emitting sector turns from agriculture sector in 1992 into service sector in 2007; (3) the consumption level and the emission intensity are the main drivers that influence the change in indirect carbon emissions; and (4) the factor of consumption level presents positive effect on the emissions, while the emission intensity effect plays a negative role. Besides, the factors of urbanization, production structure, population size and consumption structure also promote the rapid increase in carbon emissions.

Liquidity constraint, uncertainty and household consumption in China

This paper investigates the changing roles played by liquidity constraint and uncertainty in accounting for the dynamism of Chinese household consumption behaviour. Starting from the Euler equation-based model of Robert Hall, a framework encompassing an array of consumption models is developed and applied to Chinese data over the period 1961−1998. Empirical results reveal a regime shift in the early 1980s and imply that increases in the proportion of liquidity constrained consumers and increased uncertainty in the post-reform period are responsible for the extremely low consumption or high savings in China. Moreover, it is found that interactions between liquidity constraint and uncertainty reinforce each other's effects and lead to declines in both the level and growth of consumption.