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A1c Digital Finance and Happiness: Evidence From China
Key Words
digital finance, happiness, financial capability, debt burden, overspending
Short Description
The empirical research on happiness and digital finance has grown enormously during last decade. However, with the rapid growth of digital finance in China, studies about the relationship between digital finance and happiness remain limited. To fill this gap, this study used data from China Household Financial Survey and Peking University Digital Financial Inclusion Index to examine the association between digital finance and happiness. Results showed that the relationship between digital finance and happiness is negative. Mechanism analyses suggested that digital finance is negatively associated with happiness through the increasing debt burden and overspending behavior. Further heterogeneous analyses found that age, debt level and trust can be moderators in the relationship between digital finance and happiness. The results have policy implications for improving digital finance business and consumer subjective well-being.