Social security as a buffer: examining the relationship between economic policy uncertainty and rural consumption

Abstract Social security serves as a crucial mechanism for income redistribution and significantly shapes rural residents’ consumption patterns. Using panel data from 31 Chinese provinces (2000–2021), this study employs fixed-effects and threshold models to examine how economic policy uncertainty (E...

Full description

Saved in:
Bibliographic Details
Main Authors: Renxing Chen, Yu Hu, Yixin Xue, Xiaotian Zhang
Format: Article
Language:English
Published: Springer Nature 2025-05-01
Series:Humanities & Social Sciences Communications
Online Access:https://doi.org/10.1057/s41599-025-04955-0
Tags: Add Tag
No Tags, Be the first to tag this record!
_version_ 1850190594085748736
author Renxing Chen
Yu Hu
Yixin Xue
Xiaotian Zhang
author_facet Renxing Chen
Yu Hu
Yixin Xue
Xiaotian Zhang
author_sort Renxing Chen
collection DOAJ
description Abstract Social security serves as a crucial mechanism for income redistribution and significantly shapes rural residents’ consumption patterns. Using panel data from 31 Chinese provinces (2000–2021), this study employs fixed-effects and threshold models to examine how economic policy uncertainty (EPU) affects rural consumption, with a particular focus on the dual role of social security. Key findings reveal the following: (1) EPU stimulates essential consumption but suppresses discretionary consumption among rural residents; (2) social security levels significantly mediate the EPU-consumption relationship; and (3) threshold analysis reveals nonlinear dynamics—the positive marginal effect of EPU on consumption progressively diminishes as social security levels increase. These findings advance the theoretical understanding of EPU transmission mechanisms while providing policymakers with evidence to optimize social security systems to stabilize rural household consumption.
format Article
id doaj-art-94fb33ef0de340ecb4db2dec12bdebe4
institution OA Journals
issn 2662-9992
language English
publishDate 2025-05-01
publisher Springer Nature
record_format Article
series Humanities & Social Sciences Communications
spelling doaj-art-94fb33ef0de340ecb4db2dec12bdebe42025-08-20T02:15:15ZengSpringer NatureHumanities & Social Sciences Communications2662-99922025-05-0112111310.1057/s41599-025-04955-0Social security as a buffer: examining the relationship between economic policy uncertainty and rural consumptionRenxing Chen0Yu Hu1Yixin Xue2Xiaotian Zhang3Center for Quality of Life and Public Policy, Shandong UniversitySchool of Political Science and Public Administration, Shandong UniversitySchool of Food Science and Engineering, Northwest A&F UniversitySchool of Philosophy and Social Development, Shandong UniversityAbstract Social security serves as a crucial mechanism for income redistribution and significantly shapes rural residents’ consumption patterns. Using panel data from 31 Chinese provinces (2000–2021), this study employs fixed-effects and threshold models to examine how economic policy uncertainty (EPU) affects rural consumption, with a particular focus on the dual role of social security. Key findings reveal the following: (1) EPU stimulates essential consumption but suppresses discretionary consumption among rural residents; (2) social security levels significantly mediate the EPU-consumption relationship; and (3) threshold analysis reveals nonlinear dynamics—the positive marginal effect of EPU on consumption progressively diminishes as social security levels increase. These findings advance the theoretical understanding of EPU transmission mechanisms while providing policymakers with evidence to optimize social security systems to stabilize rural household consumption.https://doi.org/10.1057/s41599-025-04955-0
spellingShingle Renxing Chen
Yu Hu
Yixin Xue
Xiaotian Zhang
Social security as a buffer: examining the relationship between economic policy uncertainty and rural consumption
Humanities & Social Sciences Communications
title Social security as a buffer: examining the relationship between economic policy uncertainty and rural consumption
title_full Social security as a buffer: examining the relationship between economic policy uncertainty and rural consumption
title_fullStr Social security as a buffer: examining the relationship between economic policy uncertainty and rural consumption
title_full_unstemmed Social security as a buffer: examining the relationship between economic policy uncertainty and rural consumption
title_short Social security as a buffer: examining the relationship between economic policy uncertainty and rural consumption
title_sort social security as a buffer examining the relationship between economic policy uncertainty and rural consumption
url https://doi.org/10.1057/s41599-025-04955-0
work_keys_str_mv AT renxingchen socialsecurityasabufferexaminingtherelationshipbetweeneconomicpolicyuncertaintyandruralconsumption
AT yuhu socialsecurityasabufferexaminingtherelationshipbetweeneconomicpolicyuncertaintyandruralconsumption
AT yixinxue socialsecurityasabufferexaminingtherelationshipbetweeneconomicpolicyuncertaintyandruralconsumption
AT xiaotianzhang socialsecurityasabufferexaminingtherelationshipbetweeneconomicpolicyuncertaintyandruralconsumption