Empirical Study of the Relations of Assets and Consumption——A VAR Model Based on the Data of Fujian Urban Residents
The major impact of assets on consumption is reflected in the wealth effect.By using the urban resident data of Fujian Province,the paper makes an empirical study of the wealth effect.The results reveal that the wealth effect of Fujian urban residents is weak and the ratio of financial assets to total assets is low.In order to promote economic growth in Fujian by stimulating consumption through the wealth effect of Fujian urban residents,the following measures must be taken.Firstly,multi-level financial market system must be constructed and the proportion of financial assets must be increased.Secondly,measures must be taken to increase the value of assets of the urban residents.Finally,measures must be taken to increase the disposable income of the urban residents.