Study On Personal Finance, Real Economy And Service Policy

The study on personal finance, real economy and services policy has not been emphasized by economists as what in fact it is. At least, there are no normative and symmetric statements in this field just like public finance and incorporate finance. However, the world-wised expansion of credit-financed personal consumption expenditure, financial market participation of families and the bloom of personal financial service industry, privatization of personal retirement security, etc., a large number of stylized facts tell us real economy, or macro-economy, to say, is already touching the impulse of personal finance stronger and stronger, ever been nearly lost in the shadow of incorporate finance and general finance system. Especially, to domestic macro-economy, facing the scarcity of personal consumption and private investment, as well as the deviation of macroeconomic growth and microeconomic stagnation, it is very important to realize the role of personal finance and its real economic effects, and related policy demand.When we study personal finance, it is inevitable to resolve the following three problems: How do or should persons allocate their assets (or make their financial planning)? To this personal financial demand, what should financial service institutions supply (including financial assets and planning services)? How real economy or macro-economy and society response to the change of personal finance micro-economic surrounding? What policies of personal financial services should government take including not only macro adjustment but micro regulation?In this paper, along above route and beginning with personal asset allocation, introduce the rational personal financial behavior, then consider the real economic effects of personal finance, and policy demands for the related domestic macro economic problems with personal finance development. The concrete contents followed.Chapter 1 introduces some main theoretic problems in personal finance. Considering personal financial planning and asset allocation as the core contents of personal finance practice and theory respectively, we study the social groupcharacters of personal asset allocation and associated risk-sharing in real economy in view of neuro-economics. Then, social security and development of financial market and institutions are concerned in the theoretical perspectives.Chapter 2 systematically reviews and compares personal asset allocation theories by integrating financial economics and practice application. In the view of historical evolvement, we show the rational personal finance demands and the benchmark of personal financial services, including financial assets and planning services, or to say, the aggregate personal finance market.Chapter 3 concretely investigates the effects of personal finance development to real economy by empirical analysis with foreign empirical facts, such as personal consumption expenditure, debt, family wealth structure, and some financial services. These empirical results support arguments for macro adjustment and micro regulation policies to develop macro-economy and personal finance.Chapter 4 investigates micro regulation polices to develop domestic personal financial services. As a pure theoretic analysis, we show the importance of anti-fraud, anti-manipulation rules and information disclosure institutions. Besides, Concerned with domestic historical facts, show some suggestions for industry regulation policies of personal financial services.Chapter 5 investigates the macro policy support to develop domestic personal financial services. Consider some macroeconomic and social problems related to real economy, such as social security and the adjustment of capital market finance structure.