Research On The Household Portfolio Choice

Household is the most fundamental structure of society, which exerts an important influence on social economy, politics and culture. Under the condition of market-oriented economy, the economic behavior of household includes income behavior, consumption behavior and investment-accumulated behavior. In recent years, with the deeper reform of the economic structure, household, as a main part of market-oriented economy has also played the part of the investors and the behavior of accumulation and investment has become a key supplement of making up for a loss of government and companies.The sustained growth of the economy in our nation results in the increase of the residential income.And the physical and financial assets are the manifestation of wealth accumulation. The asset structure is developing in diversity which is the main part of the national economy. However, because of the uncertain factors, the behavior of the portfolio choice becomes more and more complicated in order to maximize the consumption of smoothing in the life period and effectiveness. The choice of effective portfolio and the way of distribution play a bigger role in the increase of the total assets and in the stable development of economy.The thesis aims at discussing the theories of the portfolio choice, building the framework of analysis by ways of the theoretical research, comparative analysis, questionnaire investigation and the combination of research in measure. Yangzhou the middle-leveled economic city in Jiangsu Province as an example, the study engaged in the analysis of the current situation, differences and influences of the household portfolio.The current study analyze the total amount, structure and variations of the financial assets of the rural and urban household through employing references of time series, the result comes out to be the total assets of the per household financial assets increase continuously, the increasing rate of per household assets of rural household is lower than that of urban; the inner structure of the household financial assets is more diversity, the percentage of rural household physical assets decreases while the percentage of financial assets increases; The main parts of the financial assets and physical assets are housing and saving, which indicates the residents'traditional thoughts and ideas still remained as Housing to Dweller and Depending on Savings. Household income serves as the foundation of assets. The income differences between rural and urban resulted in the different choice of the amount and structure of the total assets. A Positive correlation is found between the income and total assets of the household. For the choice of the asset and the income distance in the urban household, it could be seen that the percentage of the physical assets and financial assets increases. The effect of the per asset consumption is more or less the same in asset accumulation and inner structure variation of the rural and urban households. The results show that the per asset consumption has less relationship with total assets and physical assets, with the same rising tendency of the increasing amount of financial assets. The average consumption tendency and marginal consumption tendency plays a certain part in the choice and accumulation of the asset. After the research goes through surveys and questionnaires, the study concludes that the age, income, education background and occupation of the residents have also made effects on the invest choice to some degrees, which indicates the investment that household chose by themselves is close related with their background situations. The study employs Logit model to analyze stock investment of the city and urban household, so as to find that the age, education back ground, yearly household income level and the total financial assets are all the major factors in choosing whether to invest stocks or not. The costs of exchange, financial knowledge and wealth amounts greatly affect the possibility of rural household'in becoming shareholders. The study finally proposes that in order to promote a rapid and stable economic growth and satisfy different household'demands, it is urgent to improve the income level, perfect the social security system, put in order and develop capital market, accelerate the creation of financial instrument, disseminate financial theoretical knowledge and cultivate residents'risk consciousness and so on.The main creative contribution of this article lies in using the time series data and data of cross section to analyze family financial assets and physical assets of the rural and urban households; compare the possessions and the different choices of the capital in rural and urban; employ Multiple Regression Analysis and Logit (binary choice model) to analyze the possessions and the different choices of the capital in rural and urban. The limitation of the study is lack of deep analysis of the various factors which affect residents'stock-purchasing, and without identifying reasonable interval estimation of households'assets structure or predicating total assets.