Economic Policy Uncertainty,Financial Literacy And Household Financial Asset Allocation

Since the founding of new China,China’s economy has maintained a steady development trend,and has now entered a new stage of high-quality development.The disposable income of families has been increasing,and the financial market and financial policies have been improving day by day.Obtaining income through financial investment has become an important way for families to obtain income.Financial literacy is an important factor affecting household financial investment,and macroeconomic policy uncertainty also has an important impact on micro household investment decisions.This thesis takes household financial asset allocation as the observation object,and explores the impact of financial literacy on household financial asset allocation,and the regulatory effect of macroeconomic policy uncertainty on financial literacy and household financial asset allocation,It provides a reference for Chinese families to further optimize the allocation of financial assets.First of all,starting from China’s national conditions and practical problems,this thesis puts forward the research ideas,research contents,research methods,technical routes and innovation points of the article on the basis of combing the current domestic and foreign literature on macroeconomic policy uncertainty,financial literacy and household financial asset allocation;Secondly,based on portfolio theory,behavioral finance theory,human capital theory and planned behavior theory,this thesis constructs the theoretical basis,further looks for the mechanism and influencing factors,constructs an empirical analysis framework,and puts forward research hypotheses;Thirdly,the Chinese Household Finance Survey(chfs)database is collated,statistically analyzed,and the principal component factor analysis method is used to construct the household financial literacy index.The Chinese provincial economic policy uncertainty index measured by Yu et al.Is used as the economic policy uncertainty index of this thesis,The household financial asset allocation is divided into household financial market participation,household financial asset proportion,and household financial asset diversity,At the same time,the core variables of the overall and urban-rural,regional,educational level,income heterogeneity descriptive analysis;Then,probit model is built to explore the impact of financial literacy on household financial market participation,the regulatory effect of macroeconomic policy uncertainty on financial literacy and household financial market participation,Tobit model is built to explore the impact of financial literacy on household financial assets,and the regulatory effect of macroeconomic policy uncertainty on financial literacy and household financial assets,Build OLS model to explore the impact of financial literacy on the diversity of household financial assets,and the regulatory effect of macroeconomic policy uncertainty on financial literacy and the diversity of household financial assets.On this empirical basis,use the score aggregation method to calculate the new financial literacy index as the proxy variable for robustness test,and select the average financial literacy level of the community as the tool variable to build Ivprobit model Ivtobit model and 2SLS model were tested for endogeneity.At the same time,the heterogeneity of urban and rural areas,regions,education level and income is analyzed;Finally,according to the research results,it summarizes the research conclusions,puts forward countermeasures and suggestions from the government level,household level and institutional level,and puts forward research prospects according to the follow-up research direction.The research finds that,first,the level of household financial literacy in China is low and the difference is obvious.The answers to the five questions measuring household financial literacy are poor.The calculated household financial literacy index is low and the gap between them is obvious.In the heterogeneity of financial literacy,urban families are higher than rural families,eastern families are higher than central and western families,high-level families are higher than low-level families,and high-income families are higher than low-income families;Second,the allocation of household financial assets in China is unreasonable.The participation in the risk financial market is low,the proportion of risk financial assets is relatively low,and the diversity of risk financial assets is low.Households prefer risk-free financial assets;Thirdly,financial literacy can improve the participation rate of household financial market;Fourth,financial literacy can optimize the proportion of household financial assets;Fifth,financial literacy can improve the diversity of household financial assets;Sixthly,economic policy uncertainty will promote the inhibition of financial literacy on the proportion of risk-free financial assets,that is,under the effect of macroeconomic policy uncertainty,families with higher financial literacy will further reduce the proportion of risk-free financial assets;Seventh,economic policy uncertainty will inhibit the promotion of financial literacy to the types of risky financial assets,that is,under the effect of macroeconomic policy uncertainty,families with higher financial literacy will inhibit the increase of the types of risky financial assets;Eighth,the regulatory effect of economic policy uncertainty is clearly distinguished in the heterogeneity study.The regulatory effect of economic policy uncertainty on financial literacy,the proportion of risk-free financial assets and the types of risk financial assets is significantly different in the heterogeneity analysis of urban and rural areas,regions,education levels and incomes.Therefore,the government departments should keep the policy consistent and continuous,and build a long-term policy mechanism;Strengthen financial education and promote inclusive finance;Strengthen financial supervision and standardize market operation.Families should pay attention to the changes of economic policies and reasonably adjust the proportion of assets;Learning financial knowledge and improving financial literacy;View risks rationally and actively participate in the market.Financial institutions should publicize financial policies and provide financial services;Innovate financial products and improve category quality;Set up communication channels and regularly track feedback.