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This article provides an analysis of the impact of the pandemic on household liquidity constraints using the China Household Finance Survey (CHFS) data We find that households’ liquidity constraints become serious after the outbreak of COVID-19 Households’ likelihood of liquidity constraints increases with the severity of the pandemic, mainly due to the COVID-19 pandemic shock to employment and household income Meanwhile, the deterioration of households’ liquidity significantly increases their saving willingness and decreases their consumption
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Emerging_Markets,_Finance_&_Trade
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COVID-19 Pandemic and Household Liquidity Constraints: Evidence from Micro Data
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