Improving Family Development Ability: The Treatment Effect of Family Savings: Empirical Evidence From a Generalized Propensity Score Matching Approach

Based on the theory of asset building, this study provides an in-depth analysis of the China Family Panel Studies (CFPS) conducted in 2016. The main objective is to examine the measurement structure of China’s family development ability and explore the relationship between the family saving rate, government subsidies, and family development ability using the structural equation modeling approach. Additionally, this research identifies the causal treatment effects of family savings rate and government subsidies on family development ability through propensity score matching and generalized propensity score matching methods. Consequently, it offers a comprehensive analysis of the impact of family savings rate and government subsidies on family development ability. The findings indicate that the influence of government subsidies on improving family development ability is negligible, while the effect of family saving rate on various factors of family development ability is significant. Specifically, the relationship follows an inverted U-shaped curve, with a family saving rate of approximately 35% demonstrating optimal performance. One possible explanation for this trend is that increased family savings instill a sense of future confidence among family members, thereby promoting family development ability. The robustness of these conclusions is confirmed through various causal inference models. These empirical findings provide valuable evidence and serve as a reference for exploring the transformation and development of social policy models in China.