| Abstract: | This paper investigates whether domestic consumption dragged down by real estate sector, using the panel data of China Family Tracking Survey (CFPS) in 2012, 2014 and 2016. This paper constructs the consumption structure upgrading index represented by food, daily necessities and cultural, educational and entertainment expenditure according to the industrial upgrading rate, and builds a model based on LC-PIH theory to analyze whether the change of household wealth has wealth effect on residents consumption. Through empirical analysis, this paper finds that risk-free financial assets have a squeezing effect on household consumption, and risky financial assets, net real estate and productive fixed assets have a significant wealth effect on household consumption. Finally, this article proposed how to promote the upgrading of Resident Consumption Structure in China. |
