Economic Uncertainty,Asset Effect and Resident Consumption
By constructing a mathematical model of residential optimal consumption decision-making including economic uncertainty,the article derives the asset effect mechanism of how e-conomic uncertainty affects the consumption of residents.Data from China Family Panel Studies are used and an inter-provincial economic uncertainty index is constructed to make empirical test.Research finds out that economic uncertainty reduces resident consumption expenditure through as-set effect mechanism in general.The increase in economic uncertainty triggers the increase of sys-tematic risk in the market,increasing the risk premium of residentassets,and forcing asset value to shrink,reducing their willingness and participation in the risk asset market,leading to a decrease in asset income,and ultimately suppresses resident consumption expenditures.Structurally speak-ing,economic uncertainty mainly suppresses consumption expenditure by reducing property values and asset income.Among them,residents who carry mortgages are more negatively affected by e-conomic uncertainty and have a greater degree of consumption reduction.Due to the uneven asset allocation structure of domestic residents,the asset effect of financial products on household con-sumption is relatively weak,therefore it is difficult for economic uncertainty to influence consump-tion through the value of financial assets such as stocks and the degree of financial market partici-pation.
Economic UncertaintyAsset EffectResident ConsumptionAsset Income
万方数据
维普
