"Squeezing-in"or"Squeezing-out":the Impact of Fiscal Transfer Payment on Consumption—An empirical study from the heterogeneous perspective of household debt
A profound understanding of the impact and mechanism of fiscal transfer payments on household consumption in the context of household debt heterogeneity is of significant value for governments to formulate fiscal transfer payment policies.Using panel data from the Chinese Family Panel Studies(CFPS)in 2014,2016,and 2018,as well as provincial panel data from 2006 to 2021,this study empirically examines the consumption effect of fiscal transfer payments from the perspective of household debt heterogeneity.The empirical findings indicate that an increase in fiscal transfers leads to an increase in household consumption,but this effect diminishes as household debt levels rise.Moreover,household debt heterogeneity results in variations in the responsiveness of household consump-tion levels and structures to fiscal transfer shocks.The impact of fiscal transfers on consumption from the perspective of household debt heterogeneity operates through the two channels:liquidity constraints and precautionary savings.Additionally,the level of household debt in different regions has different impacts on the consumption effect of fiscal transfer payments.Therefore,governments should con-sider the regional debt level differences when formulating fiscal transfer payment policies,reasonably control the leverage of the house-hold sector,reduce household economic risks,and boost consumption.
household debtfinancial transfer paymentsheterogeneityconsumption
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万方数据
