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

Jan P. VOON, Ruifang ZHANG

Research output: Journal PublicationsJournal Article (refereed)


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.
Original languageEnglish
Pages (from-to)146-156
Number of pages11
JournalChina: An International Journal
Issue number1
Early online date25 Apr 2013
Publication statusPublished - Apr 2013


Bibliographical note

This research was supported by a research grant from Lingnan University (grant
no. DR09D4).

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