Research and Empirical Examination of Consumer Credit Theory

Author: Sun Conghai
Publisher:
Publish Date: 2003-05-01
Features: The rapid development of consumer credit in China in recent years can be considered a major highlight of economic growth, and theoretical research on consumer credit has also become one of the hot topics in economic theory research. This phenomenon is attributed to the changes in economic realities triggered by China's economic system reform. During the planned economy period, the widespread shortage of goods was accompanied by a low level of consumer credit development, and theoretical research on the issue lacked sufficient motivation. Over the past two decades, the immense potential unleashed by China's reform and opening-up has brought fundamental changes to our overall market conditions, transforming a shortage-based economy into an excess-based economy. Expanding effective demand and promoting economic growth have become the themes of our economic theory research. Under this unique historical background, research on consumer credit has taken on particular theoretical and practical significance. In fact, as one form of credit, consumer credit has a long history of emergence and development, and existing economic theories have conducted substantial research on this issue. Therefore, the opening chapters of this book provide a detailed examination and comparison of the theoretical research findings on consumption and consumer credit in Western economics, thereby establishing a knowledge base. From the examination results, it can be seen that many economic theories in Western countries often treat consumer credit as an assumption and conduct in-depth research on it. However, our research perspective must shift. When conditions change, human behavior will follow. Thus, this book dedicates considerable space to examining the limiting conditions that influence and determine the development of consumer credit, including both micro and macroeconomic foundations as well as cultural and institutional factors, which partially explain the reasons for the lag in the development of consumer credit in China. The historical examination of the emergence and development of consumer credit, its operational mechanisms, and the macroeconomic effects of consumer credit are all approached as much as possible in accordance with the academic traditions of economic research, with some efforts made in examination and analysis.