The Research On Medical Insurance's Influence Mechanism On Family's Risky Asset Allocation

In recent years,along with the rapid development of China's economy,there is a sharp rise in Chinese family wealth level.Household asset allocation also presents the diversified development trend.As a social-economy foundation,family is playing an important role in financial market.However,China has been facing the problem of over-high savings.According to data provided by Wind,in 2015,China's saving ratio is as high as 48.67% much higher than the saving ratio of the United States(19.2%).According to the report of China household finance survey in 2016,Chinese households' stock assets to total assets ratio is 4.4%,significantly lower than this ratio of American households(12.9%).Diversified levels of household financial assets structure is one of the important indicators to measure one country's financial development degree.The over-high saving problem and low level of risk assets allocation problem,on the one hand,is not conducive to residents' wealth increasing,leading to further expanding the gap between the rich and the poor;On the other hand,if the savings cannot be effectively transform to risky assets investment,it is not conducive to the development of capital market in China.This paper assume that one of the important reasons of this phenomenon may be China's social security system is not perfect,residents tend to deal with risks in the future by reducing risk assets investment and increase the precautionary savings.Medical insurance is an important part of social security system,this article will compare the difference of the risky asset allocation of the family with and without medical to study the medical insurance's influence mechanism on family's risky asset allocation.We explore the current medical insurance's impact on family risky asset allocation of different risk situations to measure the current medical insurance's ensure degree for family.The study is helpful to establish the standard to measure the ensure degree of medical insurance so that the medical system reform is related to residents wealth increasing and capital market development.The improvement of medical care is beneficial to promote household to invest.At the same time,social medical system reform can encourage families to participate in the capital market investment,which not only can make the residents richer,reduce the gap between the rich and the poor,maintain social stability,but also can promote the development of capital market.This paper establishes family risk rates,and rates all the samples.Introducing family risk model,the empirical analysis based on the total sample,the medical insurance and the influence of family of family risk of asset allocation.Secondly,we study the medical insurance's influence mechanism on family's risky asset allocation through the analysis on sub-samples of with and without medical insurance.According to family risk rates,the total sample can be divided into three subsamples called lowrisk,medium-risk and high-risk families.We analyze three subsamples respectively,and explore the influence of medical insurance for family risk asset allocation under different risk.Moreover,because China is a country with a vast territory,so this article also divide the total sample into three subsamples,eastern,middle and western residents,to explore the difference between influence mechanism of households in different zones.Finally,the paper will explore different medical insurances' influence on household risky assets allocation.By reviewing the previous literature and empirical analysis,we draw the following conclusions:First,through the study of the empirical analysis of the total sample,we find that medical insurance has significant positive effect on household investing risky assets,and risk has significant negative effects.Second,we find that medical insurance influence household risky asset allocation by hedging risk through analyzing the subsamples of the household with and without medical insurance.Third,through analyzing subsamples of low-risk,medium-risk and high-risk family,we find that for low-risk and medium-risk family,medical insurance has significant positive influence on households' risky asset allocation.For the high-risk families,medical insurance's influence is not significant which may be due to the present social medical insurance cannot guarantee high-risk families.Fourth,through the analysis of eastern,middle and western subsamples respectively,for the eastern subsample,we find that medical insurance has significant positive influence on households' risky asset allocation.Medical insurance has no significant impact on the middle and western household risky asset allocation.Fifth,we find that urban workers basic medical insurance has significant positive effect of household risky asset allocation and urban residents' basic medical insurance only has positive effect for low-risk household risky asset allocation,while new rural cooperative medical system has significant negative effects.In addition,the household's net assets are positively correlated with the probability and degree of participation of household investing in stock.Moreover,if the head of a household is highly educated,the household will be more likely to invest in stock,while house ownership has significant “crowding out effect”.