Survey study reveals that financial self-efficacy and wealth influence happiness in China, suggesting vital implications for education and policy.
Key Points
This study aims to explore the relationships between personal wealth, financial self-efficacy, and happiness among Chinese citizens, incorporating GDP dynamics.
Analyzed data from the China Household Finance Survey (CHFS) covering 2010 to 2019.
Employed instrumental variable (IV) techniques to address endogeneity concerns.
Utilized triple interaction methods to examine the moderating effects of GDP growth and income inequality.
Findings show a significant positive link between financial self-efficacy and happiness.
Personal wealth is indicated to enhance happiness but is moderated by GDP growth rates.
Highlights that rapid economic growth may diminish the happiness of individuals through increasing income inequality.