Household Finance Research Articles

A study of the impact of digital finance usage on household consumption upgrading: Based on financial asset allocation perspective

This paper analyzes the impact of digital financial usage on household consumption upgrading using data from the China Household Finance Survey (CHFS) 2015–2019. Overall, using digital financial services stimulates household consumption and enhances consumption patterns. Mechanistic analysis indicates that digital financial usage positively influences consumption upgrading by optimizing household financial asset allocation. This is evidenced across four dimensions: participation in risky financial markets, augmentation of risky asset allocation, and enhancement of financial investment portfolio diversity and efficacy. Furthermore, the influence of digital financial usage on consumption upgrading varies according to age, wealth, and region differences.

Does housing purchase affect entrepreneurship? -Evidence from urban households in China

The study applies an endogenous switching probit model, using the data from the China Household Finance Survey (CHFS) to explore the joint decision mechanism between housing purchase and entrepreneurship and estimate the (treatment) effect of housing-purchase on entrepreneurship. The findings are threefold. First, a higher housing price reduces the probability of house-purchase intention, and also that of actual house-purchase-action. Second, both house-purchase-intention and -action discourage actual entrepreneurship investment. Third, house-purchase-intention has a negative effect on potential entrepreneurship plans, while house-purchase-action encourages households to plan for a business in the future.

Multi-factor fuzzy sets decision system forecasting consumer insolvency risk

The objective of this study is to develop a multi-factor decision system predicting insolvency risk for natural persons with the use of fuzzy sets. Considering that the financial situation of households is affected by various endogenous and exogenous factors, the main assumption of this study is that the system for predicting financial difficulties should not be limited to the use of only a few financial variables concerning consumers, but also include variables describing the environment. The author proposes a system consisting of three different forecasting models that connect the macroeconomic and microeconomic environments. It monitors the economic situation of households by also identifying those environmental variables, which may directly, or indirectly, endanger the consumer, such as unemployment rate (job market situation), inflation and interest rates, exchange rates, or economic situation in the country (GDP growth rate, the dynamics of retail sales, etc.). Moreover, the created cause-and-effect tool is in the form of a flexible application that can be easily adapted to changing economic conditions. Another unique feature of the study is the proposed use of newly developed ratios in household finance, similar to that in financial ratio analysis, which is commonly used in corporate finance. The proposed ratios demonstrated high predictive abilities. The paper also identifies the predictive capabilities of selected macroeconomic variables from the perspective of their impact on the risk of consumer insolvency. The research relies on four samples consisting of a total of 2400 consumers from Taiwan and Poland. The author created three forecasting models separately for the South-East Asian and Central European regions, and two multi-factor systems, each consisting of 1260 decision rules. The findings clearly showed that fuzzy logic is a significantly more effective method compared to traditional models based on classical logic.

Intergenerational educational mobility and family economic vulnerability: Evidence based on the CHFS study

This paper examines how intergenerational educational mobility affects family economic vulnerability using China Household Finance Survey (CHFS) data. The results show that higher educational mobility significantly reduces family economic vulnerability, confirmed by robustness tests. The effect is stronger in regions with higher marketization and among lower-income families. These findings offer valuable insights for policymakers to enhance economic stability by improving educational resources and supporting reforms, addressing educational development, and economic vulnerability issues.

The Impact of Property Tax Expectations on Household Asset Allocation

Rational asset allocation is central to household wealth accumulation. This paper employs data derived from the 2019 China Household Finance Survey to methodically examine the influence of property tax expectations on the asset allocation decisions of households. This study finds that the expectation of property tax positively influences both the probability of holding risky financial assets and their proportion of household assets. The percentage of housing assets constitutes a substantial negative moderating factor affecting the relationship between property tax expectation and household investments in risky financial assets. The positive effect of property tax expectations is more significant in eastern China. A definite expectation of property tax causes a precautionary saving effect among households. This study highlights that forming reasonable expectations about property taxes can help households adjust their investment portfolios in advance, diversify their asset allocation, and mitigate the impact of changes in property tax policies.

ICT adoption, commercial orientation and productivity: Understanding the digital divide in Rural China

This study investigates the impact of Chinese smallholders’ adoption of Information and Communication Technologies—the use of smartphones and computers connected to the internet—on their commercial orientation, land, and labor productivity. Commercial orientation is the share of farm output for sales in the market. We used a control function approach and a selectivity-corrected model. The study uses national survey data from rural sample households, the China Household Database, and the China Household Finance Survey and Research Center. Findings reveal that the adoption of information and communication technologies by Chinese farmers increased the commercial orientation of farming. Furthermore, adopting information and communication technologies increases land and labor productivity by about 21.3 % and 28.2 %, respectively. Farm households’ commercial orientation improved labor productivity by about 35.9 %. Heterogeneity indicates that the adoption of information and communication technologies has a more significant effect on improving productivity for young household heads and small farmers. Policymakers should establish information and communication technologies training programs, develop digital infrastructure, and promote smallholder commercial production to increase agricultural productivity.

The Rural-Urban Intermarriage and Female Identity Formation in Contemporary China

This article analyzes the marital experiences of rural-urban female migrants in contemporary China through qualitative semi-structured interviews. It argues that these women have gained more autonomy and higher status within their families through intermarriage. Despite these improvements, they continue to face significant prejudices and pressures from family members and society. The empirical research reveals that female migrants often struggle with managing relationships with their elders. Additionally, differences in economic income and the division of domestic labor lead to conflicts over household finances between female migrants and their partners. The study found that female migrants are under multiple pressures from their partners and parents-in-law, often choosing to compromise in domestic conflicts. Overall, the autonomy that female migrants exhibit in intermarriages highlights a significant transformation in their self-determination and self-identification.

Edukasi Literasi Keuangan Digital Bagi Masyarakat RW 14 Kelurahan Uwung Jaya Kecamatan Cibodas Kota Tangerang

In line with the development of higher information technology, resulting in people easily accessing all information, especially in shopping online, investing online, making online loans and gambling online, this certainly requires strong household financial management. Conducting digital financial literacy education in the community is one solution to reduce the impact of errors due to improper management and to reduce the gap between understanding financial literacy and financial inclusion in the community. With the delivery of digital financial literacy education, it is hoped that the community will be able to manage household finances wisely.

The Role of Housewives in the Management of Household Finances

The aim of study focuses on evaluating the role of the housewives, regarding the terms such as: financial management, knowledge and use of financial products, financial planning, forecasting and savings as well, level of debt. Female workers from the “Duxom” Corporate participated in the study, which are located in the different headquarters in the State of Mexico, Progreso, Tabasco, Sinaloa, Sonora, Guadalajara, Veracruz, and Baja California. Of the total number of employees, a non-probabilistic sample was applied by self-determination, in order to obtain the greatest number of cases in the time established for the field study, which was two months. To obtain the data we used a scale, which integrates questions from the participants' profile, and 27 items related to financial management (9 items); knowledge and use of financial products (4 items); financial planning at home (4 items), foresight and savings (3 items), debt level (7 items). With the results, a four-factor model is validated, where we can see that women like to have items to impress people, and it gives them pleasure to buy luxury items. They agree to be guarantors for other people, they make extreme decisions in investments and something very risky, they make purchases even when they cannot pay them, since they prefer to have debts than to let their children go without gifts on important dates. They like to buy online because the internet makes everything easier for them. They recognize the importance of families setting financial goals to identify priorities. Finally, they consider that having a written financial plan is essential for successful financial management of income, savings and expenses, which translates into family success.

The impact of the digital economy on land transfer-out decisions among Chinese farmers: evidence from CHFS micro-data

Land transfer is essential for advancing moderate-scale agriculture, and the digital economy plays a key role in facilitating these transfers. Based on microdata from four rounds of the China Household Finance Survey spanning from 2013 to 2019, this study employs a Linear Probability Model (LPM) to examine the impact of digital economy on rural land transfer-out decisions. The results indicate that: (1) The development of the digital economy significantly increases the likelihood of rural households transferring land out. Specifically, for each unit increase in the digital economy index, the probability of a household transferring land out increases by 3.39%. These conclusions remain robust even after accounting for endogeneity and conducting robustness checks. (2) The digital economy facilitates rural land transfer-out by promoting non-agricultural employment and entrepreneurship among farmers, as well as enhancing online social interactions and information acquisition. (3) There are heterogeneous impacts due to different scales and transferees, variations in physical and human capital, as well as differences in village topographies. This study deepens the understanding of the digital economy's impact on land transfer decision-making and provides relevant policy references for facilitating land transfer and agricultural modernization.

Penerapan Akuntansi dalam Rumah Tangga

This study aims to examine the role of accounting in the Maulo'o Village community and how accounting is applied in households regarding four important things, namely budgeting, recording, decision making and long-term planning. This study uses a qualitative method with a phenomenological study approach. The results of the study indicate that the application of accounting in households plays a very important role in people's lives. The important role of accounting and the benefits of accounting in household life are useful for stabilizing household finances, controlling expenses and prioritizing primary needs and preventing families from debt activities. The application of accounting in the decision-making practices of eight housewife informants in Maulo'o Village always discusses with her husband in making decisions and also prioritizes primary needs such as children's education costs and does not forget to always save for future needs.

Financial literacy, entrepreneurial activity and entrepreneurial motivation

This paper investigates the impact of entrepreneurial motivation on entrepreneurial activity using data from the Chinese Household Finance Survey. The paper finds that both opportunity entrepreneurial motivation and survival entrepreneurial motivation can significantly promote entrepreneurial activity. Survival entrepreneurial motivation has a stronger effect. Further analysis reveals that the higher the level of financial literacy, the more obvious the promotion effect of entrepreneurial motivation on entrepreneurial activity. Financial literacy plays a role as a moderating variable.

How does financial literacy affect households’ financial fragility? The role of insurance awareness

This paper investigates the impact of household heads' financial literacy on households' financial fragility. We estimate a panel probit model by employing panel data from four waves (2015, 2017, 2019, and 2021) of the China Household Finance Survey (CHFS) with 58,802 observations. We focus on the mediating role of insurance awareness. First, enhanced financial literacy significantly mitigates households’ financial fragility, with insurance participation emerging as a crucial mechanism. Second, our cross-sectional analyses show that the beneficial effects of financial literacy are more pronounced in households not constrained by wealth or cognitive skills, as well as households with lower health risks and those located in the central and western regions of China. Third, we identify that financial literacy, through its distinctive financial knowledge attributes, offers unique contributions to reducing household financial fragility, separate from general cognitive abilities. Last, we highlight peer effects in the influence of financial literacy on financial fragility, predominantly driven by social norms.

A Study of the Impact of Household Wealth Accumulation on the Well-being of the Population

Happiness is the ultimate goal of a good life for residents, and high-quality wealth accumulation is an important force for improving people's well-being. Based on the 2015, 2017 and 2019 China Household Finance Survey (CHFS) survey data, this paper examines the effect of household wealth on residents' happiness using a fixed-effects probit model. It is found that, first, an increase in household wealth significantly increases residents' happiness. The greater the accumulation of household wealth, the happier the residents, and the conclusion still holds after a series of robustness tests. Second, household wealth accumulation has a more pronounced effect on the happiness of residents in the eastern region and a stronger effect on the happiness of urban residents. Third, family wealth accumulation has a stronger effect on the happiness of residents with middle and high levels of education than those with low levels of education. The conclusions of the study are of great significance for regulating the mechanism of family wealth accumulation, strengthening residents' sense of well-being and promoting the high-quality development of society.

Multilevel social insurance needs and household financial asset allocation

This study selects data from the China Household Finance survey 2019, constructs the residents’ financial literacy index using factor analysis, and uses the probit model to examine the impact of multilevel social insurance demand on household financial asset allocation. This study finds that multilevel insurance demand weakens household financial asset allocation while other factors remain constant; the age of the household head negatively affects the allocation of household risky financial assets; household financial literacy moderates multilevel insurance demand and household financial allocation.

Retirement, confucian culture, and household financial asset allocation for older adults

This paper explores the impact of retirement on the financial asset allocation of elderly households and innovatively examines the moderating effect of Confucian culture. Using data from the China Household Finance Survey, the empirical results show that older adults reduce risky assets and increase savings after retirement. Confucian cultural concepts reinforce this conservative trend. The study also reveals the heterogeneous effects of household head health, urban-rural differences, and risk attitudes on allocation. This paper provides an essential reference for optimising the allocation of older households' financial assets and addressing the ageing challenges.

Household Financial Fragility, Debt and Income in a Dynamic Model

AbstractWe develop a novel dynamic model for household debt and household income change studying the interaction between financial fragility and financial literacy. We compare the results to the U.S. data under several parameterizations. Households react pro-cyclically to income shocks and are better able to represent aggregate data when financial literacy is low.

Time lag analysis of real estate supply policies for housing construction projects

ABSTRACT Real estate is not only a vital component of the economy, but it also has a considerable influence on household finance and various social and cultural phenomena. South Korea is experiencing an accelerating trend of economic polarization, which is being driven by low interest rates and growth paradigm. It’s important to recognize that asset disparity, rather than income differences, is the primary cause of this polarization. Therefore, it is crucial for government entities to intervene through real estate policies to address this issue. However, government policies have at times failed to meet expectations, showing limitations in stability and reliability. They have failed to provide precise responses to demand and supply, ranging from implementing excessive regulation policies to considering occupancy rates as current supply rather than as results of previous policies. To address these issues, we applied cross-correlation analysis to derive time lags between procedures in housing construction projects at the national level in South Korea. This approach can provide essential insights to enhance the effectiveness of supply policies by identifying the temporal discrepancies that occur until actual supply is realized.

Digital Financial Capability and Entrepreneurship in China: A Digital Economy Perspective

The digital economy is the fastest-growing sector in the world today, and will also be the key development direction of China in the future. The level of digital financial capability (DFC) determines whether households can fully embrace the inclusivity of digital finance and seize the business opportunities presented by the digital economy. Hence, we utilized panel data from the China Household Finance Survey (CHFS) and built a probit model with two-way fixed effects. The results revealed that DFC has a positive impact on household entrepreneurship through both supply- and demand-side mechanisms. The results also revealed that DFC has not only catalyzed the evolution of digital business models but has also enhanced the digital business performance of enterprises. The analysis of heterogeneity confirms that DFC can promote entrepreneurship in rural settings and in the retail and restaurant sectors. This research has important theoretical contributions and policy suggestions for governments to help them pay attention to the inclusive role of DFC in developing the digital economy.

Analysis of residents’ health and willingness to pay for environmental protection in China

Health and environmental issues have become pressing global problems that affect human society's sustainable development. Residents are not only practitioners but also direct beneficiaries of ecological protection and play a crucial role in maintaining ecological and environmental health. Health, as the basis of residents' behavioral choices, influences residents' behavior toward ecological and environmental protection. This study aims to investigate how health factors profoundly affect residents' willingness to pay (WTP) for environmental protection and reveal the intrinsic connection between health and environmental protection behavior. The 2017 China Household Finance Survey (CHFS) data and the ordered probit model were used to determine that improving residents' health greatly increases their willingness to protect the environment and passes a number of tough tests. In addition, the promotion effect of health on residents' WTP for ecological protection is markedly heterogeneous, especially in younger residents who do not have children. Therefore, we suggest to policymakers and national governments a range of countermeasures and suggestions to enhance health education, safeguard public health, and promote ecological protection education.