Do psychological factors emanating from a financial crisis affect consumption? Evidence from China

Document Type

Journal article

Source Publication

China: An International Journal

Publication Date

4-2013

Volume

11

Issue

1

First Page

146

Last Page

156

Abstract

This article evaluates the role and importance of psychology in consumption. Different psychological states emanating from the 2008 global financial crisis were modelled in this analysis. Using Chinese household survey data (N = 10,043), the consumption of both employed and unemployed Chinese consumers was shown to be significantly correlated with changes in the psychological states (such as mental accounting, emotion, optimism and perception) wrought by the crisis. An implication is that public policies, including the provision of social safety nets and income protection measures, may help to allay these psychological stresses and hence their adverse consumption impacts.

DOI

10.1353/chn.2013.0004

Print ISSN

02197472

E-ISSN

02198614

Publisher Statement

Copyright © China: An International Journal

Access to external full text or publisher's version may require subscription.

Full-text Version

Publisher’s Version

Language

English

Recommended Citation

Voon, J. P., & Zhang, R. (2013). Do psychological factors emanating from a financial crisis affect consumption? Evidence from China. China: An International Journal, 11(1), 146-156. Retrieved from http://muse.jhu.edu/journals/chn/summary/v011/11.1.voon.html

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