Under the new development pattern, the expansion of consumption is one of the important means to promote the high-quality development of the economy. This paper is based on the perspective of financial investment income, utilizing data from the 2013-2019 China Household Finance Survey (CHFS) to study household consumption behavior. The results of the study indicate: first, financial investment income has a significant positive impact on household consumption expenditure, but to a lesser extent; second, financial investment income can improve the structure of household consumption; third, the positive impact of financial investment income on the consumption expenditure of lower-education and lower-wealth households is more significant, which is consistent with the theory of precautionary saving and liquidity constraints. The innovation of this paper lies in providing empirical evidence to support the establishment and enhancement of a long-term mechanism for promoting consumption through financial investment income, while also proposing new ideas to improve the welfare of low-income classes.

Zhaoqun He. The Impact of Financial Investment Income on Household Consumption: An Empirical Analysis Based on CHFS Data. Academic Journal of Business & Management (2024) Vol. 6, Issue 7: 159-166. https://doi.org/10.25236/AJBM.2024.060722.

[1] Liu Changgeng, Gu Yang, Zhang Lei. The mystery of China's low consumption: an explanation based on the "disposability" of labor remuneration [J]. Journal of Social Science of Hunan Normal University, 2023, 52(2): 22-31. 

[2] Zhao Qingming, Guo Mengyang. An empirical test of the impact of China's stock market wealth effect on residents' consumption—A new perspective based on the extended model of life cycle-durable income theory [J]. Securities Market Herald, 2020, (1): 31-37. 

[3] Li Hualin. Consumption promotion capital market has great potential [N]. Economic Daily News, 2023-08-03(7). 

[4] Dang Xue, Jiang Manyuan. The impact of property income structure on residents' consumption level [J]. Journal of Commercial Economics, 2020, (6): 41-44.

[5] Fagereng A, Holm M B, Moll B, et al. Saving behavior across the wealth distribution: The importance of capital gains [R]. National Bureau of Economic Research, 2019.

[6] Zhang Ji, Zhang Yanze, Cao Yang. Can optimizing household income structure promote consumption upgrading? [J]. Research on Economics and Management, 2021, 42(7): 51-65. 

[7] Ning Guangjie. Residents' Property Income Gap: Ability Differences or Institutional Obstacles? —Evidence from China's household finance survey [J]. Economic Research Journal, 2014, 49(S1): 102-115.

[8] Zhang Menglin, Li Guoping. Financial Inclusion, Household Heterogeneity, and Consumption Structure Upgrading [J]. Economic Review Journal, 2021, (2): 116-128.

[9] Jappelli T, Pistaferri L. The consumption response to income changes [J]. Annual Review of Economics, 2010, 2(1): 479-506.

[10] Jappelli T, Pistaferri L. Fiscal policy and MPC heterogeneity [J]. American Economic Journal: Macroeconomics, 2014, 6(4): 107-136.

[11] Yin Zhichao, Guo Peiyao. Evaluation of the effect of precise poverty alleviation policy—An empirical study from the perspective of household consumption [J]. Journal of Management World, 2021, 37(4): 64-83.

[12] Yin Zhichao, Qiu Hua, Pan Xuefeng. The impact of housing wealth on urban household consumption in China [J]. Journal of Financial Research, 2021, (2): 114-132.

[13] Yi Xingjian, Wang Jingxue, Chen Jun, et al. The impact of financial assets on household consumption—An empirical test based on the perspective of asset structure [J]. Consumer Economics, 2020, 36(5): 3-16.

[14] Yang Biyun, Guo Zhuangzhe, Yi Xingjian, et al. The micro effect of the digital economy to promote the upgrading of household consumption of residents—A study based on empirical evidence of CHFS [J]. Economic Review, 2023, (3): 31-47.

[15] Wang Yitong. The impact of household financial asset allocation structure on residents' consumption [D]. Shandong: Shandong University, 2023.