Family Network and Household Expenditure
Keywords:
Family Network; Consumption Expenditure; Household Borrowing; Access to Employment.Abstract
Consumption has a lasting pulling power on the economy and is an important expectation on China's road to stable growth, but the problem of underconsumption has become increasingly prominent in China in recent years. Unlike social and clan networks, the unique structure of family network allows families to maintain closer ties with each other by blood and marriage. This paper examines the impact of family network and household consumption expenditure using data from the China Family Tracking Survey (CFPS) questionnaire. The study results show that close family network show a significant positive relationship with household consumption expenditure. The results of the mechanism analysis suggest that family network may contribute to more household consumption expenditure by achieving more household borrowing with access to more employment channels. Heterogeneity analyses suggest that greater household wealth, housing assets, and higher age of the head of household can significantly strengthen the contribution of family ties to household consumption expenditure.
Downloads
References
Chen Changsheng, Xu Wei, Lan Zongmin. The basic characteristics, development trend and improvement strategy of consumption tendency in China [J]. Management World, 2021, 37(08): 46-58. (in Chinese)
Yang Rudai, Chen Binkai, Zhu Shie. Research on farmers' private lending demand behavior based on social network perspective [J]. Economic Research Journal, 2011, 46(11): 116-129. (in Chinese)
Li Peilin. Social network and social status of migrant workers [J]. Sociological Research, 1996, (04): 42-52.
Gan J. Housing Wealth and Consumption Growth: Evidence from a Large Panel of Households [J]. Review of Financial Studies, 2010, 23(6): 2229-2267.
Campbell J Y, Cocco J F. How do house prices affect consumption? evidence from micro data [J]. Journal of Monetary Economics, 2007, 54(3): 591-621.
Kahneman D, Tversky A. Prospect theory: an analysis of decision under risk [J]. Econometrica, 1979, (2): 263- 291.
Thaler R. Toward a positive theory of consumer choice [J]. Journal of Economic Behavior & Organization, 1980, (1): 39- 60.
Tian Zifang, Li Tao, Fu Lin. Family relations and household consumption [J]. Economic Research Journal, 2022, 57(06): 173-190.
Hu Jinyan, Yuan Li. The influence and mechanism of clan network on family private financial participation [J]. Finance and Trade Economy, 2017, 38(06): 33-48. (in Chinese)
Guo Yunan, Zhang Linyi, Yao Yang. Clan network, financing and farmers' self-employment [J]. Journal of Finance Research, 2013, No.399(09): 136-149.
Guo Yunan, Yao Yang. Clan network and rural labor flow [J]. Management World, 2013, No.234(03): 69-81+187-188.
Knight J, Yuehd L. The Role of Social Capital in the Labour Market in China [J]. Economics of Transition, 2008, 16(3): 389-414.
Hu Feng, Chen Yuyu. Social networks and farmers' lending behavior: Evidence from the China Household Dynamics Tracking Survey (CFPS). Journal of Financial Research, 2012, No.390(12): 178-192.
Wu L. Social Network Effects on Productivity and Job Security: Evidence from the Adoption of a Social Networking Tool [J]. Information Systems Research, 2013, 24(1): 30-51.
Cuypers I. R. P., Eetug G., Cantwell J, et al. Making connections: Social networks in international business [J]. Journal of International Business Studies, 2020, 51(5): 714-736.
Banfield E. C. The Moral Basis of a Backward Society [Z]. Free Press. 1985
Greif A. Family Structure, Institutions, and Growth: The Origins and Implications of Western Corporations [J]. Economic Review, 2006a, 96(2): 308-312.
Greif A, Tabellini G. The Clan and the City: Sustaining Cooperation in China and Europe [M]. Mimeo: Stanford, 2012.
Ma Guoqing. Family changes in contemporary China: Characteristics, trends and prospects [J]. Population Research, 2023, 47(01): 43-57. (in Chinese)
Whyte, M.K. The Chinese Family and Economic Development: Obstacle or Engine? [J]. 1996, 45(1): 1-30.
Kinnan C, and Townsend R.2012, “Kinship and Financial Networks, Formal Financial Access and Risk Reduction”, American Economic Review,02(3),289-293.
Lu Zhiqiang, Li Hongyu. The impact of household debt on consumption: Wealth Effect or wealth Illusion: A Comparative analysis of urban and rural households [J]. China Soft Science, 2021, No.365(05): 70-78.
Modigliani F, Brumberg R. Utility analysis and the consumption function: an interpretation of cross-section data [J]. Journal of Post Keynesian Economics, 1954, (1): 388-436.
Mian A, Rao K, Sufi A. Household balance sheets, consumption, and the economic slump [J]. Quarterly Journal of Economics, 2013, 128(4): 1687-1726.
Tu Xianjin, Xie Jiazhi, Zhang Ming. Virtual Wealth Effect of financial borrowing on peasant household Consumption: Based on the perspective of consumption stratification [J]. Journal of Zhongnan University of Economics and Law, 2018, (02): 90-96.
Qian Long, Hong Mingyong. Non-agricultural employment, land transfer and agricultural productivity change: An empirical analysis based on CFPS [J]. Chinese Rural Economy, 2016, (12): 2-16.
Li Tao, Zhang Wentao. Personality characteristics and stock investment [J]. Economic Research, 2015, 50(06): 103-116.
Talhelm, Zhang X., Oishi S., et al. Large-Scale Psychological Differences within China Explained by Rice Versus Wheat Agriculture [J]. Science, 2014, 344(5): 603-608.
Pan Jianping, Pan Yue, Ma Yihan. Is "harmony" the most valuable? Cooperation culture and enterprise innovation [J]. Journal of Financial Research, 2019, No.463(01): 148-167.
Downloads
Published
Conference Proceedings Volume
Section
License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
