{"title":"How does housing security affect the average consumption propensity? - Evidence from China","authors":"Hao Xu, Zeyu Lin","doi":"10.1016/j.habitatint.2025.103607","DOIUrl":null,"url":null,"abstract":"<div><div>This study employs Chinese provincial panel data and data from the China Family Panel Studies (CFPS) to examine the impact and underlying mechanisms of housing security expenditure (HSE) on average propensity to consume (APC), as well as the nonlinear moderating effect of government size (GS). The results indicate that HSE significantly enhances APC at both macro and micro levels. Regarding mechanisms, HSE exerts dual positive effects: On one hand, it effectively alleviates the liquidity constraints faced by supported households; on the other hand, it provides these households with convenient access to public services and employment opportunities, which helps reduce the uncertainties they encounter. All these positive effects enhance their APC. Heterogeneity analysis indicates that compared with HSE, which provides ownership-type indemnificatory housing, HSE, which provides rental-type indemnificatory housing, can more significantly enhance APC. Meanwhile, HSE demonstrates pronounced pro-poor traits. It has a more substantial enhancing effect on APC among low-income households and those living in economically underdeveloped regions. Moreover, GS plays an “inverted U-shaped” moderating role in the positive relationship between HSE and APC, particularly evident in China's central and western regions. The conclusions drawn from this study are conducive to a deeper understanding of the relationships among HSE, GS, and APC. Moreover, they offer a robust theoretical basis and ample empirical evidence to help developing countries more effectively optimize their housing security policies, taking the expansion of domestic demand as a strategic pivot, and devise relevant institutional reform plans.</div></div>","PeriodicalId":48376,"journal":{"name":"Habitat International","volume":"166 ","pages":"Article 103607"},"PeriodicalIF":7.0000,"publicationDate":"2025-10-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Habitat International","FirstCategoryId":"96","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S0197397525003236","RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"DEVELOPMENT STUDIES","Score":null,"Total":0}
引用次数: 0
Abstract
This study employs Chinese provincial panel data and data from the China Family Panel Studies (CFPS) to examine the impact and underlying mechanisms of housing security expenditure (HSE) on average propensity to consume (APC), as well as the nonlinear moderating effect of government size (GS). The results indicate that HSE significantly enhances APC at both macro and micro levels. Regarding mechanisms, HSE exerts dual positive effects: On one hand, it effectively alleviates the liquidity constraints faced by supported households; on the other hand, it provides these households with convenient access to public services and employment opportunities, which helps reduce the uncertainties they encounter. All these positive effects enhance their APC. Heterogeneity analysis indicates that compared with HSE, which provides ownership-type indemnificatory housing, HSE, which provides rental-type indemnificatory housing, can more significantly enhance APC. Meanwhile, HSE demonstrates pronounced pro-poor traits. It has a more substantial enhancing effect on APC among low-income households and those living in economically underdeveloped regions. Moreover, GS plays an “inverted U-shaped” moderating role in the positive relationship between HSE and APC, particularly evident in China's central and western regions. The conclusions drawn from this study are conducive to a deeper understanding of the relationships among HSE, GS, and APC. Moreover, they offer a robust theoretical basis and ample empirical evidence to help developing countries more effectively optimize their housing security policies, taking the expansion of domestic demand as a strategic pivot, and devise relevant institutional reform plans.
期刊介绍:
Habitat International is dedicated to the study of urban and rural human settlements: their planning, design, production and management. Its main focus is on urbanisation in its broadest sense in the developing world. However, increasingly the interrelationships and linkages between cities and towns in the developing and developed worlds are becoming apparent and solutions to the problems that result are urgently required. The economic, social, technological and political systems of the world are intertwined and changes in one region almost always affect other regions.