Research Of The Effect Of Health Shock On Financial Assets Decision Of Elderly Households

The rapid growth of the national economy has led to the continuously increase in household earning in China;the quality of family life has been greatly improved.The scale of household assets has reached new highs repeatedly,the holding willingness and proportion of financial assets are constantly rising,and the allocation of household financial assets presents a trend of diversification.Household financial assets decision not only enables households to share the achievements of social and economic development through the participation in the financial market,but also influences the dynamic accumulation and distribution of society wealth.However,there is a big gap between the rich and the poor in the total wealth of Chinese households,and the asset structure of households is not balanced which has a strong heterogeneity.Previous studies have focused on analyzing the reasons for the heterogeneity of household financial assets decision from the aspects of economic and demographic characteristics,but they still cannot fully explain the limited participation and heterogeneity of household financial assets decision.In recent years,scholars have turned their attention to the perspective of health and tried to analyze the effect of health factors on household financial assets decision.At present,the 2019 Corona-virus disease which is spreading all over the world,fully illustrates that health will have great influence on individual household and even the whole social economy.Through the review and summary of relevant research literatures,the studies on the relationship between health and household financial assets decision are mainly concentrated in the empirical research of household financial assets portfolio decision and have few empirical researches of household financial assets scale decision and few theoretical researches of household financial assets decision model.There is a short of systematic and comprehensively review on the influencing mechanism of health shock on household financial assets decision.Therefore,this paper takes elderly households with the greatest health risk as the research object,deeply analyzes the effect of health shock on the financial assets decision of elderly households and its influencing mechanism through theoretical research and empirical research.This paper comprehensively defines the connotation of health and health shock and analyzes the motivation,target and behavior process of financial assets decision behavior of elderly households according to the demand of health theory,liquidity preference theory,the precautionary savings theory,behavior finance theory and behavior science theory.On this basis,it is concluded that health shock can influence the financial assets decision of elderly households through health expenditure,risk attitude and health risk.The establishment of the theoretical framework of the effect of health shock on financial assets decision of elderly households provides a powerful foundation for the follow-up study from theoretical aspects.Under the guidance of the theoretical framework of the effect of health shock on the financial assets decision of elderly households,the research hypotheses of this paper are proposed.By constructing the CRRA utility function model,the Cobb-Douglas function model of consumption and health,the health production function model,the portfolio return rate model and the wealth budget constraint condition,the theoretical model of the effect of health shock on the financial assets decision of elderly households is established.The scale and portfolio decisions of elderly household financial assets and their influencing factors are considered respectively in the case of health shock and non-health shock.And numerical simulation is carried out according to the solution results.The effect of health shock on financial assets decision of elderly households and its influencing mechanism are studied from the perspective of theoretical model.After the theoretical research,this paper examines the effect of health shock on the financial assets scale and portfolio decisions of elderly households from the perspective of empirical research.Health shock variables were characterized by the method of exponential construction,and the Tobit model was used to empirically test the effect of health shock on the financial assets scale and portfolio decision of elderly households based on the heterogeneity analysis of financial assets and health status of sample data from CHARLS.PSM approach and panel data are applied to examine the endogenous and robustness of the empirical model.After the confirmation of the effect of health shock on the scale and portfolio of financial assets decisions of elderly households,this paper tests the influencing mechanism of health shock on the scale and portfolio of financial assets decisions of elderly households from health expenditure,risk attitude and health risk according to the step method(stepwise regression method).Firstly,the empirical tests of the effect of health shock on mediating variables are carried out.When the results are significant,the effects of health shock on the scale and portfolio of financial assets decisions of elderly households are investigated after the addition of mediating variables.By comparing the difference of regression coefficient and significance level between the two models before and after adding the mediating variable,it can judge whether the mediating effect is established.PSM approach and panel data are applied to examine the endogenous test and robustness test.Finally,In the light of research conclusions,this paper presents the optimization proposals of financial assets allocation of elderly households.Elderly households should improve their financial awareness,actively participate in financial market transactions,fully consider the effect of health risk on the financial assets allocation of elderly households and smooth the economic effect of health shock on elderly households through commercial insurance and other methods.Financial organizations should speed up the creation of differentiated products,broaden investment channels for elderly households,popularize investment concepts and expertise,and promote the growth of property income of elderly households.The government should also fully strengthen the role of macro-control to increase the household income level,and provide investors with a safe and efficient investment surroundings;improve the social security construction and release the willingness of elderly households to take part in the financial activities.