Digital Financial Development, Rising Housing Prices and Non-residential Consumption in China: Empirical Analysis Based on Wealth Effect and Crowd-out Effect

Huihui Li

《Frontiers in Economics and Management》 2卷7期 (2021/07) Pp. 30-36

https://doi.org/10.6981/FEM.202107_2(7).0005

摘要

This article has conducted a systematic discussion on the development of digital finance and high housing prices squeezing non-residential consumption (consumption other than house purchase) , which have received much attention in recent years. Empirical analysis based on provincial panel data in China shows that: (1) High housing prices have both ＂wealth effect＂ and ＂crowding out effect＂ on non-residential consumption; (2) The development of digital finance directly promotes non-residential consumption, and has an indirect positive effect on non-residential consumption by improving the ＂crowding out effect＂; (3) Digital finance may also encourage real estate speculation and further crowd out non-residential consumption through the ＂wealth effect＂. Therefore, the comprehensive impact of rising housing prices on consumption cannot be ignored. Relevant departments should further optimize housing price control measures, strengthen supervision and guidance while developing digital finance to promote consumption, and effectively prevent digital finance from bringing new risks to the real estate market.

關鍵字

Digital Finance ； House Price ； Wealth Effect ； Crowding out Effect ； Non-residential Consumption

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