A structural utility mediation model : China during the global financial crisis
Document Type
Journal article
Source Publication
International Journal of Economics and Finance
Publication Date
11-1-2011
Volume
3
Issue
6
First Page
141
Last Page
147
Keywords
Financial Crisis, Emotion, Saving Culture, Consumer Utility, Mediation, China
Abstract
In this paper, we analyze the effects of the 2008 global financial crisis (GFC) on consumer utility in China. Changes in consumer utility wrought by the GFC were measured by changes in consumption and income. Our empirical analysis using structural equation modeling (SEM) showed that the GFC had affected consumer utility directly and indirectly. The indirect effects were mediated by (a) the emotion or anticipatory feeling evoked by the GFC and (b) the change in saving culture or value of the Chinese. We found that route (a), but not (b), was extremely important in mediating the change in consumer utility. Contrary to conventional wisdom, the indirect effect was found to be stronger than the direct effect, pointing to the importance of the role of anticipatory feeling for assessing consumer utility. The model we obtain has a non-significant p value of 0.345 (df=9; Chi-square=10.063).
DOI
10.5539/ijef.v3n6p141
Print ISSN
1916971X
E-ISSN
19169728
Publisher Statement
Copyright © Canadian Center of Science and Education
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Full-text Version
Publisher’s Version
Language
English
Recommended Citation
Voon, J. C., & Voon, J. P. (2011). A structural utility mediation model: China during the global financial crisis. International Journal of Economics and Finance, 3(6), 141-147. doi: 10.5539/ijef.v3n6p141