This study investigates the link between Chinese citizens' wealth, financial self-efficacy, and happiness by using unique survey data from the China Household Finance Survey (CHFS) between 2010 and 2019. It especially looks at how financial self-efficacy and personal wealth influence happiness and how gross domestic product (GDP) growth rates mitigate these links. The main parts of this study are split into three linked chapters, each building on the one before it and aiming to reveal the complex links among Chinese personal wealth, financial self-efficacy, and happiness. Additionally, to solve any endogeneity problems and increase the validity of the results, every chapter uses the instrumental variable (IV) technique. This study presents several significant innovations. Firstly, it incorporates GDP growth rates into the research framework on wealth, financial self-efficacy, and happiness. By highlighting the potential detrimental effects of economic expansion on happiness, this enhances theoretical comprehension of the ‘happiness paradox’. Secondly, this study uses data from the CHFS, offering a large-scale panel dataset. This improves the generalisability and robustness of the research findings. Thirdly, this study uses the triple interaction method and brings the moderating effects of macroeconomic factors. This could emphasise how rapid economic growth and persistent income inequality can affect happiness and asset holdings in the Chinese context. Next, this study yields implications for educational programmes. It suggests that initiatives aimed at cultivating financial self-efficacy could significantly impact both individual and societal happiness. Lastly, the findings provide policymakers with useful guidance at the policy level. To achieve balanced economic and social development, consideration must be given to residents' quality of life and mental health while pursuing economic growth.
Yuting Tian (Thu,) studied this question.