In this paper,we investigate the effect of digital financial inclusion(DFI)on household consumption smoothing in China.We use four waves of the biennial China Family Panel Studies from 2010 to 2016,during which time D...In this paper,we investigate the effect of digital financial inclusion(DFI)on household consumption smoothing in China.We use four waves of the biennial China Family Panel Studies from 2010 to 2016,during which time DFI has significantly developed alongside financial technology across China.We split household income shocks into permanent and transitory components,and evaluate if DFI may help households to buffer against these shocks.We find that households are not able to insure against permanent shocks to income,but they can smooth approximately 70 percent of transitory shocks to income.We also find that DFI has diminished households'ability to insure against transitory income shocks.This is partly because online purchase may lead to the oversensitivity of consumption to income.In addition,we find that contrary to DFI,traditional financial sector development contributes to better household consumption smoothing against transitory income shocks.展开更多
基金Jennifer T.Lai gratefully acknowledges financial support from the National Science Foundation of China(No.71403061)the Fund Projects of Guangdong University of Foreign Studies(Nos.18ZD01 and HW2018012)the Foundation of Southern China Institute of Fortune Management Research.Xingjian Yi gratefully acknowledges financial support from the National Social Science Foundation of China(No.15ZDA013).
文摘In this paper,we investigate the effect of digital financial inclusion(DFI)on household consumption smoothing in China.We use four waves of the biennial China Family Panel Studies from 2010 to 2016,during which time DFI has significantly developed alongside financial technology across China.We split household income shocks into permanent and transitory components,and evaluate if DFI may help households to buffer against these shocks.We find that households are not able to insure against permanent shocks to income,but they can smooth approximately 70 percent of transitory shocks to income.We also find that DFI has diminished households'ability to insure against transitory income shocks.This is partly because online purchase may lead to the oversensitivity of consumption to income.In addition,we find that contrary to DFI,traditional financial sector development contributes to better household consumption smoothing against transitory income shocks.
