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Welfare housing and household consumption in urban China

Author

Listed:
  • Li, Yu
  • Liu, Kai
  • Lu, Xiaoying
  • Wang, Ben Zhe
  • Zhou, Xuan

Abstract

This study investigates the long-term impact of access to welfare housing ownership on household consumption using data from the China Family Panel Studies (2010 to 2018). Our results show that households that owned welfare housing had a higher level of consumption than those without access to such housing, even after controlling for the housing wealth effect. This positive impact on consumption was particularly significant for low-consumption households. We found that welfare housing ownership increased consumption through reducing household debts, enhancing consumer confidence, and facilitating further accumulation of assets.

Suggested Citation

  • Li, Yu & Liu, Kai & Lu, Xiaoying & Wang, Ben Zhe & Zhou, Xuan, 2022. "Welfare housing and household consumption in urban China," Journal of Economic Behavior & Organization, Elsevier, vol. 195(C), pages 326-334.
    • Handle: RePEc:eee:jeborg:v:195:y:2022:i:c:p:326-334
    DOI: 10.1016/j.jebo.2022.01.024
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    More about this item

    Keywords

    Housing policy; Public housing; Consumption; Wealth effect;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • H40 - Public Economics - - Publicly Provided Goods - - - General
    • P36 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets

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