Household financial behaviour and economic decisions

This thesis explores the role of income expectations, housing demolitions, and financial literacy in determining household financial and consumption decisions based on three popular nationally representative datasets of Chinese households. There are three empirical chapters, mainly providing empirical evidence to the existing literature on household finance. Chapter 2 investigates the role of income expectations in shaping household financial and consumption decisions based on cross-sectional data from the 2002 wave of the Chinese Household Income Project (CHIP). Chapter 3 examines the impacts of housing demolitions on household financial and consumption decisions mainly based on balanced panel data from the waves 2013 and 2017 from the China Household Finance Survey (CHFS). Chapter 4 examines the impacts of basic and advanced financial literacy on household financial and consumption decisions based on unbalanced panel data from the waves 2010, 2012, 2014, 2016, and 2018 of the China Family Panel Studies (CFPS).