Speaker: Zhou Xianbo (Lingnan College, Sun Yat-sen University)
Inviters: Liu Xiuyan, Li Hao (Southeast University)
Time: 2:00 - 3:30 pm
Date: September 22, 2022
Tencent Meeting ID: 647-557-709
About Speaker:
Zhou Xianbo is a professor of economics and doctoral supervisor at Lingnan College of Sun Yat-sen University, Executive Director of the Chinese Society of Quantitative Economics and Executive Director of the Chinese Society of Information Economics. His research areas include econometric theory and application, consumer economics, labor economics, etc. He has presided over 1 major project of the National Social Science Foundation of China and 3 projects of the National Natural Science Foundation of China and has published more than 60 papers in leading domestic and international journals including Journal of Econometrics, Econometric Theory, China Economic Review,Economic Research, Quarterly Journal of Economics, etc. He has published two books and written one textbook. He has been awarded the Second Prize of Excellent Achievements in Scientific Research in Higher Education (Humanities and Social Sciences), the First Prize of Higher Education Teaching Achievement in Guangdong Province, and the Teaching Master of Sun Yat-sen University.
Abstract:
This paper investigates the trickle-down consumption effect and the moderating effect of digital finance in China. Three realistic patterns motivate this study: trickle-down consumption has been confirmed in many developed countries, digital finance facilitates household consumption, and China exhibits income inequality across regions. Evidence based on data from the 2017 and 2019 China Household Finance Survey (CHFS) shows Chinese households exhibit trickle-down consumption behavior and that the development of digital finance acts as a moderator by increasing trickle-down consumption. This moderating effect of digital finance is somewhat heterogeneous by year, geographic location, hukou, and household income. The mechanism analysis results confirm that the relaxation of liquidity constraints is the main channel through which the positive moderating effect operates. Our findings are robust to various tests. Some policies are suggested to alleviate consumption inequality by developing digital finance and stimulating a spontaneous pattern of trickle-down consumption in China.
