Research On The Effect Of Stock Asset Allocation On The Consumption Level Of Urban Households

With the development of economy,stock assets play a more and more important role in family wealth management.At the same time,promoting the prosperity of stock market is one of the important ways for consumption to promote economic growth.Therefore,it is beneficial to the country and the people to realize the dynamic balance between the consumption and the allocation of stock assets of urban households.Based on the urban household data of CHIP(2013),the thesis analyses the current situation of the stock asset allocation tendency and quantity of urban households under different consumption levels.The results show that,with the increase of household consumption level,the households will increase the tendency and quantity of stock asset allocation.In terms of theoretical research,the thesis uses the classical consumption theory and the target basic asset allocation model of wealth management to consider the impact of urban household consumption level on the tendency and quantity of urban household stock asset allocation from the perspective of household risk tolerance.Then,using Pontryagin's optimal control principle,the relationship between urban household consumption level and stock asset allocation is demonstrated in detail by mathematical model,including steady-state analysis,equilibrium analysis and phase analysis.Specifically,in the equilibrium state of the differential dynamic system,the improvement of consumption level will definitely encourage families to increase the proportion of stock assets allocation;phase analysis shows that the balance between consumption level and the proportion of stock assets allocation is unstable,that is,the change of consumption level can explain the change of the proportion of stock assets allocation,but this relationship is not worthwhile.For full trust,we must also use other control variables to explain the strategic adjustment of stock asset allocation.In empirical research,based on CHIP(2013)urban household data,the thesis first uses Probit and Tobit model to analyze the impact of urban household consumption level on the tendency and quantity of household stock asset allocation.And then uses instrumental variables,model transformation and variable substitution to test the robustness and reliability of the empirical results.Then the thesis analyses the important adjusting variables and their adjusting effects on the relationship of demonstration.Finally,using the intermediary mechanism,the thesis analyses how the consumption level of urban households affects the allocation of household stock assets through intermediary variables.The results of analysis show that,if urban households have low risk tolerance and do not guarantee the minimum consumption level,they will not allocate stock assets.With the continuous improvement of consumption level,the willingness and ability of households to take risks are constantly improved,and the quantity and tendency of allocating stock assets are constantly increasing.Urban households with debts such as vehicle loans and education loans have a weak economic strength and low risk tolerance and willingness,so the increase of household consumption expenditure has a weak effect on the tendency and quantity of their stock allocation,while the real estate debt has no significant effect on the relation of consumption expenditure and stock allocation.Because of the influence of traditional ideas and financial environment,urban households use capital which should be used to invest in stocks for savings.With the increase of household savings,the promotion of urban household consumption level on the tendency and quantity of stock asset allocation is gradually weakening.To sum up,in the wealth management of urban households,we can achieve the maximization of household consumption utility by appropriately allocating high-risk assets under the premise of risk control,but we must pursue the dynamic balance between household consumption and stock asset allocation as a whole,in order to achieve the ultimate goal of wealth management—financial freedom.