Research About Effects Of Basic Pension On Household Wealth Accumulation And Household Portfolio Of China

Wealth of Chinese Families growths rapidly with the income improving and insurance coverage increasing in recent years.Families as the most basic units in economic,play an important role in economic growth and they balance the macroeconomic structure because of their wealth reserves,asset distribution,investment participation,and allocation ratios.More eyes focus on the distribution,constitution and portfolio of the household wealth.The average household assets of urban households in China come to 3.179 million yuan,and real estate accounts for more than 70% of total household assets,according to the 2019 survey report on the assets and liabilities of urban households which released by the People's Bank of China.Although the accumulation of household assets is considerable,few of them are invested in risky assets: stocks,funds,and bonds only account for 6.4%,3.5% and 1.2% of the total household wealth,however,most financial assets are in cash or savings.The family wealth growing as well as portfolio changing usually depends on the improvement on basic pension.The improvement in retired individuals' pension income was not only for minimum pension standard of folks in cities and villages but also for the insurance coverage by government reports 2020.The coverage and income of basic individuals' endowment insurance are increasing and keep folks away from the problems of retired.Pension makes great progress of household wealth accumulation,household portfolio and investment on risk with the help of government.Thus,this research focus on the relationship between basic pension insurance and family assets.Analysis of pension insurance system,theoretical mechanism modeling discussion and empirical measurement regression are used in pension calculation and effect regression of pension on household wealth:First,this research sorts out the development context and implementation details of various basic pension insurance in different periods since 1949.In personal aspect,all pension assets of employees in institutions,government,companies and residents in urban or rural are calculated and evaluated with the data of China institute for income distribution in 2002,2013 and 2018,what is more,the distribution of assets and time varying are also concerned in this research.It is easily to find that folks in China own a large amount of pension assets,however,there is also a great gap between the pension of urban employees and urban-or-rural resident.The research also contains the time varying from finical assets,real estates,durable costs,permanent assets for production and pension assets,which are compared with the assets of folks in U.S in distribution and time-varying with the data of United States Federal Reserve during 1989 to 2016.Second,household pension is divided into two parts: pension saving and nopension saving under the wealth accumulation path with Dynamic Asset Accumulation Model in life cycle theory.The research concerns about how insured affects household wealth accumulation in various occupation with Tobit and IV-Tobit regresses model.The research also concerns about how pension assets affect household wealth accumulation in various occupation with Tobit and IV-Tobit regresses model.The research finds that pension assets own the lowest substitution effect on the whole wealth for folks working in institutions,however,it takes highest affection on folks insured in pension of urban and rural residents.Third,the research concerns about how retirement affects wealth accumulation besides the influence of pension assets.Wealth of old families' growth after retirement in retirement consumption model,and old families always change their investment choice caused by heritage motivation in heritage motivation model and generation alternation model.Data of 2014 and 2016 China Family Panel Studies is used in research about how retired affects old families' portfolio with Fuzzy RDD.It is easily to find that old families own more saving and less risk property,as to real estate,it various from owner occupied to investment property.Both area and value of old families' house declining after retired but old families own more other houses besides own occupied after retired.The main reason is old families would reduce their house-consumption but the increasing stronger heritage motivation would make them purchase more investment property for their next generation as a bequest in future.Fourth,pension participation effect not only accumulation of household wealth but also the attitude to families to risky and stock investment.In the background risk and risk aversion model,the risks faced by households fall into two categories: background risk and investment risk.Pension insurance changes the risk aversion coefficient through the protection of background risks,which promoting households invests more in risk.It is not hard to find that those families which insured by basic pension are more likely to participate risk investment and stock market after Probit and IV-Probit regression.This effect shows higher for families working in government or institutions than those company employees,it also shows higher in urban families than rural families.At last,pension assets also affect families' portfolio.After Researching about the relationship between the risk investment and stock participation in Static optimal asset allocation model,this paper found another crucial item that there is strong crowding-out effects of pension asset to risk investment and stock property in Tobit and IV-Tobit regression.This effect shows higher for families working in government or institutions than those company employees,it also shows higher in urban families than rural families.There are three innovations in this research:1.Comprehensive calculation of pension assets.Analyzing the role of family pension assets in household portfolio from the perspective of pension assets and making comparison of families in 2002,2013 and 2018 with the help of household property calculation.It is the leading research about the promotion or substitution effect of pension assets on other types of assets with quantitatively analyzing.2.Theoretical model analysis in detail.Crowding-out effect of pension assets on family wealth is founded through life cycle theory.Changes in family asset accumulation after retirement are founded through the retirement consumption model.Changes in family asset structure after retirement are founded through the inheritance motivation model.The impact of insurance participation on family risk attitudes is founded through the background risk and risk aversion coefficient model.3.It is the first test of analysis the effect of retirement on families' portfolio with fuzzy regression-distribution-design from the perspective of the exogenous impact on the retirement policy.This method greatly improves the reliability and accuracy of the results of RDD could overcome the interference in time(or age)changes from the results.