Household Debt and Risk Tolerance: Evidence From China

Jialong Li

Review of Income and Wealth, 2024, vol. 70, issue 3, 526-550

Abstract: This paper examines the relationship between the head of household's risk tolerance and household debt in China for a sample drawn from the China Household Finance Survey, 2011, 2013, 2015 and 2017. The effect of risk tolerance on both the decision to hold and the amount of total household debt, housing debt and non‐housing debt held is analyzed. The key findings indicate that risk tolerance is positively associated with household debt and non‐housing debt. Differences are found in the effect of risk tolerance on household debt across rural and urban households. For example, there exists a positive relationship between risk tolerance and the probability of holding housing debt for rural households while such a relationship is not found for urban households. In addition, the effect of risk tolerance on household debt is larger for rural households.

Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1111/roiw.12655

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:revinw:v:70:y:2024:i:3:p:526-550

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0034-6586

Access Statistics for this article

Review of Income and Wealth is currently edited by Conchita D'Ambrosio and Robert J. Hill

More articles in Review of Income and Wealth from International Association for Research in Income and Wealth Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().