The Impact Of Urban And Rural Residents' Happiness On Family Financial Asset Allocation Difference

With the development of the economy and the improvement of the quality of people's living standards,the happiness of the people is constantly improving and many families are also actively participating in the financial market.However,under the current dual economic structure of China,the differences between urban and rural residents are obvious.It is an important topic to discuss the impact of happiness of urban and rural residents on the difference in household financial asset allocation.Following the logic of behavioral finance,happiness can affect household asset allocation.Therefore,this article uses the 2015 China Household Finance Survey Data(CHFS)to conduct theoretical analysis and empirical research through Probit and Tobit models,and draws the following conclusions: firstly,happiness has a significant impact on the financial asset allocation behavior of urban and rural households,which includes breadth of household financial asset and depth of household financial asset.In practical terms,the happier urban and rural families are more willing to purchase commercial insurance to avoid future losses and don't show an increase in the amount of insurance assets;increase of happiness makes urban households reduce their savings and tends to consume at present,while rural households increase their savings to maintain future high-quality life,and urban households and rural households will maintain and increase their assets by increasing the investment proportion of savings as a result of the "remaining wealth" thought of Chinese residents;the happier urban residents usually reduce their participation in stocks and reduce the proportion of stock holdings,while happier rural households have no apparent will of risk to invest in stocks.Secondly,happiness can affect family financial asset allocation behavior through risk attitude,and this mechanism is relatively stable.The policy implications of this study that based on the differences in the allocation of financial assets between urban and rural households,the government and financial institutions work together according to local conditions and residents must also actively consult and participate through optimizing urban and rural households' financial asset allocation strategies,so as to improve residents' happiness and allow the people to better enjoy economic development.