The Study On The Effects Of Risk Attitude On Chinese Household's Wealth Accumulation And Distribution

With the reform and opening up,my country's national economy has developed rapidly.The construction of the One Belt One Road has also injected new impetus into the country's development,and the household wealth of residents has continued to increase.But there are still some problems that people are generally concerned about and need to be solved.Among them,the accumulation and distribution of family wealth are closely related to people's lives.On the one hand,although people's economic concepts are changing,the asset allocation of household wealth in my country is still dominated by risk-free and low-risk interest-bearing assets such as savings and financial management,while stocks and bonds have higher-risk property assets.The proportion is relatively small,and residents cannot fully enjoy the dividends brought about by the rapid development of the capital market.On the other hand,although my country's per capita disposable income has increased substantially,the inequality of household wealth distribution still exists and has a tendency to expand.There are many factors that affect the accumulation of household wealth.This article studies the influence of risk attitudes on the accumulation and distribution of household wealth from the perspective of risk attitudes.Based on theoretical analysis,this article uses the 2015 and 2017 China Household Finance Survey(CHFS)data to first understand,analyze and compare existing data through descriptive statistics,and then construct OLS,Tobit,Probit and Logit models.Empirically tested the impact of risk attitudes on household wealth accumulation and the wealth gap between households,and its influence mechanism,and reached corresponding conclusions.This article reuses instrumental variables to solve the endogenous problem and verify the robustness of the empirical results.From the empirical results,firstly,the increase in the degree of household risk appetite will significantly promote the accumulation of household wealth.The more risk-preferred households,the more their household wealth accumulates.In addition,affected by the level of regional economic development and people's perceptions,the impact of risk attitudes in different regions on the accumulation of household wealth is heterogeneous.Compared with the western region,the risk attitude of households in the eastern and central regions has a more significant impact on household wealth accumulation.Second,risk-biased households have higher financial market participation,especially stock market participation,and they will also choose more diversified asset allocation.According to this result,it can be concluded that the risk attitude is mainly to promote household wealth accumulation in the financial market by increasing the household's participation in the financial market,especially the stock market,and diversifying risks through diversified asset allocation.Third,the increase in risk appetite can effectively narrow the wealth gap between low-and middle-income families and enable a more equal distribution of wealth.Compared with families with medium to high wealth accumulation,the increase in risk appetite has a more significant effect on promoting the growth of low wealth families.The existing literature shows that the level of residents' financial knowledge is related to risk attitudes.The higher the level of financial knowledge,the more comprehensive the information about the financial market will be grasped,and the degree of risk preference will increase.Therefore,the government should further popularize financial knowledge to the public through various online and offline channels,and can invite relevant financial industry staff or relevant experts to conduct financial education and popularize relevant laws and regulations for the public,so as to promote more reasonable allocation of household assets;Financial innovation promotes the rich innovation of financial product categories;formulates and improves relevant laws and regulations,maintains the order of capital market operations,and protects the vital interests of family investors.Through the above measures,the accumulation of family wealth in our country can be effectively improved,and the goal of narrowing the wealth gap between families can be achieved.