The Influence Of Rural Family Age Structure On The Allocation Of Risky Financial Assets

In recent years,China’s economy has steadily developed.Rural household income continues to increase,and investment demand also has continued to grow.However,at the same time,the trend of aging population and fewer children in China is also particularly evident.In this context,studying the impact of age structure on the allocation of financial assets of rural households can help the government cope with changes in population structure and enhance the property income of rural households.This thesis focuses on the impact of family age structure on the allocation of risky assets in rural households as the theme.Firstly,it summarizes theoretical foundations such as the life cycle hypothesis,and then analyzes the age structure and financial asset allocation status of rural households in China from both macro and micro perspectives,providing factual evidence for this study.Finally,using the 2019 China Household Financial Survey data as a sample,it empirically proves that in rural households.The impact of population age structure on the allocation of risky assets in households.Based on the above empirical research,this thesis also examines the mechanism of risk attitude channels.Considering the differences in development between the eastern,central,and western regions of China,thesis conducts a heterogeneity analysis between different regions.Finally,thesis proposes corresponding policy recommendations from the perspectives of the government,financial institutions,and individuals.This thesis found that the age structure of households significantly affects the allocation of risky assets in rural households.An increase in the elderly dependency ratio will inhibit the probability and allocation proportion of rural households participating in risky financial markets,while an increase in the child dependency ratio will increase the probability and allocation proportion of rural households participating in risky financial markets.The change in family age structure can also affect the risk attitude of rural household heads,thereby affecting the allocation of risky assets.An increase in the elderly dependency ratio will reduce the risk preference of household heads,thereby reducing their choice of risky financial assets,while the impact of the child dependency ratio is the opposite.In addition,the age structure of households in the eastern region has the most significant impact on the allocation of risky assets in rural households,followed by the central and western regions.Based on the research findings,thesis suggests that the government establish a sound rural financial service system,improve the transparency and fairness of rural financial markets,strengthen the construction of rural social security systems,and improve the financial literacy of rural residents.Financial institutions actively design financial products suitable for rural residents,improve the transparency and comprehensibility of financial products,improve the quality and accessibility of services,and carry out financial inclusion initiatives;Individual family members should improve their financial literacy and establish awareness of risk management.