The Impact Of Health Risk On Household Financial Asset Allocation

With the rapid development of Chinese economy and the improvement of residents' income levels,the family's desire to participate in the financial market for realizing the preservation and appreciation of wealth has become stronger and stronger.However,the problems of "limited participation" and "heterogeneity" have always been existed in the behavior of China's household financial asset allocation in a long time.In response to this problem,many domestic literatures have examined the influencing factors of household financial asset allocation from the perspectives of household demographic characteristics,economic environment and other social factors.In order to analyze the problem of household financial decision-making in a better way,this paper based on CHFS2017 studied the impact on the allocation of household financial assets and related mechanisms from the perspective of health risk.The main work of this article can be summarized as the following two aspects:In terms of theory,this article first sorts out and summarizes the existing relevant literatures and relevant theories,and defines the concepts of household financial asset allocation and health risk in detail.Then,this article clarifies the research scope and research of aims.On the empirical side,this paper establishes a self-assessment variable for health risk,and empirically finds through the probit and tobit models that health risk has a negative impact on the probability and degree of participation of the household risk financial market.Compared with healthy households,households facing health risks are less likely participate in the risk market,and their participation level is lower.In the study of the impact mechanism,this paper constructs the family risk preference variable as an intermediary variable.Through the research of the oprobit model,it is found that risk preference plays a partial intermediary role in the effect of health risk on the household risk market participation.In addition,this paper also divides the whole sample into several sub-samples based on the age difference of the household head and the urban-rural difference of the family to study the difference in the impact of health risk on the financial asset allocation of heterogeneous households.The results show that health risk has no no life cycle effect on the probability of participation and the degree of participation.Compared with urban households,rural households have a lower enthusiasm for venture capital and a lower proportion of risk assets.