The Impact of Digital Capability on Household Consumption——An Analysis Based on Income Effect
Exploring how digital capabilities influence household consumption behavior is crucial for boosting market dynamics and strengthening intrinsic motivation.Utilizing data from the China Family Panel Studies(CFPS),this study quantifies household digital capabilities across three dimensions:usage,application,and information.We conduct an empirical analysis to assess the impact of digital capabilities on household consumption and find a significant positive correlation.Following a series of robustness checks,such as substituting core variables and altering regression samples,the findings consistently demonstrate a beneficial effect of digital capabilities on consumption.This positive effect is also significant across different consumption types.Further analysis reveals that digital capabilities primarily bolster consumption by increasing household income and reducing income volatility.The study also discerns that digital capabilities positively affect both online and offline consumption,although they do not significantly alter the household consumption-to-income ratio.Thus,while digital capabilities do not affect the marginal propensity to consume,they do enhance consumption through higher income levels and decreased income volatility.This research broadens the application of digital capabilities in consumption studies,confirms their positive impact on household income and consumption growth,and contributes to the evolving field of household finance in the digital age.
Digital CapabilityHousehold ConsumptionIncome LevelIncome VolatilityDigital Economy
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