Air Quality And Household Risk Financial Asset Selection

The family is the most basic unit of human society and an important part of financial market entities.However,the phenomenon of limited participation in the family risk financial market in my country is not only not conducive to the accumulation of family wealth,but also hinders the healthy development of the capital market.On the other hand,in recent years,the problem of air pollution dominated by fine particulate matter(PM_2.5)has aroused widespread concern in society.The continuous deterioration of air quality will affect the mental and physical health of residents,increase the uncertainty of the future,and thus affect the selection of household risk financial assets.In this context,research on the impact of air quality on the selection of household risky financial assets provides new ideas for solving the"limited participation puzzle".On the basis of introducing the research background and significance,this paper sorts out the relevant literature on the factors affecting the selection of household risk financial assets and the impact of air quality,and determines to analyze the impact of air quality on the selection of household risk financial assets as the theme;Clarify the concept of household risk financial assets,describe the selection behavior of household risk financial assets from the two aspects of household risk financial market participation and participation depth,explain the theoretical basis and analyze the impact of air quality on household risk financial asset selection,internal mechanisms and the adjustment of environmental regulations mechanism;select 2013,2015,2017,and 2019 household finance survey data,air quality data,analyze China’s air quality and household risk financial asset selection status;construct geographic regression discontinuity model,mechanism test model and moderating effect test model,and analyze air quality whether and how affects the selection of household risk financial assets and the role of environmental regulation on the relationship between the two are empirically analyzed.On this basis,the sample is divided according to the age of the head of household,family income and medical resource area,and a heterogeneity analysis is carried out.The research results show that the deterioration of air quality will inhibit the choice of household risk financial assets,and have a significant negative impact on household participation in risk financial markets and the depth of participation;air quality will affect household risk financial assets through health status and cognitive ability.Decline in health status increases preventive savings motivation,declines in cognitive ability,weakens information processing ability,and ultimately reduces household risk financial market participation and participation depth;environmental regulation can alleviate the adverse impact of air quality deterioration on household risk financial asset selection;The impact of quality on the selection of household risk financial assets and the moderating effect of environmental regulation on the relationship between the two have population and regional heterogeneity.The interaction term of environmental regulation and air quality has the strongest influence on the choice of risky financial assets of households in high-income,non-elderly and areas with rich medical resources.Finally,according to the research conclusions,some suggestions are put forward,such as strengthening environmental governance;paying attention to the impact of air quality on residents’health;strengthening the popularization of financial knowledge;increasing the income of low-income groups;and strengthening the publicity of environmental governance results,so as to optimize the selection of household risk financial assets.