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How economic stability shapes social relationship expenditures: Moderating effects of health and education

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  • Liu, Xin
  • Zhou, Chaobo
  • Li, Ying
  • Fang, Fei

Abstract

This study investigates the relationship between economic stability (ES) and social relationship expenditures (SRE) in China, utilizing data from the China Family Panel Studies (CFPS) spanning 2010 to 2022. The dataset, encompassing 8866 observations, offers a comprehensive view of household finances, expenditures, health, and education. Employing a fixed-effects model, the analysis reveals a robust positive relationship between economic stability and SRE. Households with higher financial security are more likely to allocate resources toward maintaining social ties, while liabilities such as mortgages exert negative pressures. Crucially, the moderating roles of health and education reveal nuanced mechanisms: health strengthens the ES-SRE nexus by freeing resources for social participation, whereas education attenuates this relationship as educated households prioritize long-term savings over discretionary spending. These findings underscore ES as the primary driver of SRE, contextualized by health’s enabling role and education’s reorienting effect on financial priorities. For policymakers, targeted interventions such as debt relief programs to alleviate mortgage burdens and public health initiatives to reduce medical expenses could enhance households' capacity for social engagement. Additionally, financial literacy campaigns tailored to educated populations could balance long-term savings with social connectivity. By addressing disparities in ES, health, and education, policies can foster both economic resilience and social cohesion.

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  • Liu, Xin & Zhou, Chaobo & Li, Ying & Fang, Fei, 2025. "How economic stability shapes social relationship expenditures: Moderating effects of health and education," International Review of Economics & Finance, Elsevier, vol. 99(C).
    • Handle: RePEc:eee:reveco:v:99:y:2025:i:c:s1059056025002047
    DOI: 10.1016/j.iref.2025.104041
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