The Use of Digital Finance Lead and Rural Households'"Extravagance Before Rich"
The digital finance,as a significant driver of economic and social progress,downward expands to rural areas,laying the groundwork for the emergence of"Advanced Consumption"behaviors among rural poor households.Based on the data from the China Household Finance Survey(CHFS)for the years 2015,2017 and 2019,our analysis reveals a significantly positive association between the use of digital finance and hedonistic consumption among these households,leading to the phenomenon of"Extravagance Before Rich".These results remain robust after a series of robustness tests.Mechanism analysis suggests that the use of digital finance mainly enhances hedonic consumption of rural poor households by mitigating credit constraints,improving payment convenience,and diminishing precautionary savings.Furthermore,our examination of demographic variations underscores a pronounced promotional effect of digital finance usage among whom with low level of financial literacy,being literacy,and risk neutrality.Further investigation indicates the amplifying compound impact of"Consumerism"trend and"Poverty Mentality"on the propensity for hedonistic consumption among rural poor households.In contrast to rural households in relatively poverty,the use of digital finance exhibits a more pronounced promotional impact on rural households in absolute poverty.Consequently,it is imperative to fortify the regulatory system governing digital finance,particularly the oversight of credit flows.Concurrently,interventions aimed at psychological poverty alleviation and the cultivation of intrinsic motivation within poor households are essential on the demand side.
Digital FinanceHedonistic ConsumptionRural Poor HouseholdsConsumerismPoverty Mentality
NETL
NSTL
万方数据
