An Empirical Study On The Influence Of Medical Insurance On Household Assets Allocations Under Health Heterogeneity

With the continuous development of the economy and the further improvement of the social living standards,the income and wealth level of the household have been greatly improved,then,household asset investment decision has become the choice that each family must be faced.On the one hand,household assets include real estate,stocks,insurance,funds,bond investment and so on,at the same time,the rapid development of mobile Internet and artificial intelligence makes residents confront wider range of investment and more abundant investment products,but there are still some problems in the allocation of household assets in China,such as single structure and limited participation in capital market,and the potential risks of household investment cannot be ignored;On the other hand,the further improvement of the medical system makes residents pay more attention to health and medical security.Medical insurance,as an important part of social insurance,plays an important role in the financial behavior of households,which profoundly affects the family asset selection behavior.However,the existence of households’ health heterogeneity may affect the decision of medical insurance on the allocation of household assets,so studying the influence between medical insurance and household assets selections under the condition of health heterogeneity has certain practical guiding significance,such as deepening the reform of medical system and guiding the rational allocations of family assets.First of all,this paper summarizes the existing literature,then constructs the instrumental variable of medical insurance,uses Probit,Tobit,IV-Probit and IV-Tobit models,and empirically analyzes the influence of medical insurance on the choice of household financial assets;Then further dividing the total household assets into non-liquidity financial assets,liquidity financial assets and real assets,to analyse the relationship between medical insurance and the allocation of total household assets;Last,this paper takes into account the influence of medical insurance and household assets selections under different health conditions.The difference of the influence of medical insurance on household assets selections between healthier and less healthy families was compared and analyzed.The above studies show that,firstly,the existence of medical insurance increases the possibility and proportion of households participating in risky financial markets.Secondly,in terms of total household assets,households involved in medical insurance significantly reduce the proportion of liquidity financial assets allocated to the total household assets,the existence of medical insurance increases the proportion of household allocation of non-liquidity financial assets and real assets,and the marginal effect of the allocation ratio of real assets is 3 times than the proportion of non-liquidity financial assets allocation;Thirdly,there are differences in the impact of medical insurance on household asset allocation under different health conditions.In healthier households,medical insurance significantly promotes the possibility of households participating in risky financial markets,which is not significant in less healthy households,but when households decide to participate in risky financial markets,medical insurance in less healthy households contributes more to the proportion of risky financial assets in household assets allocations.In addition,the holding of liquidity financial assets and real assets in less healthy households is not sensitive to medical insurance,while in healthier households,holding medical insurance significantly increases the proportion of liquidity financial assets and real assets.The impact of the above differences may be due to the low level of health insurance coverage in China.Finally,on the basis of the above research,this paper puts forward some suggestions,such as continuing to raise the level of medicare protection,strengthening the control and prevention of financial risks,improving the level of financial product innovation and reasonably allocating the household assets according to the actual situation.