Pension insurance, risk attitudes, and household asset allocation–evidence from China

Hua Chen, Yunxiao Guo, Ding Li and Han Xiao

Economic Analysis and Policy, 2025, vol. 86, issue C, 2180-2191

Abstract: This research, utilizing data from the China Household Finance Survey (CHFS) conducted in 2017, 2019, and 2021, examines the influence of pension insurance on asset allocation among households in China. The results reveal that increased pension balances are associated with a greater propensity to invest in riskier assets. Specifically, a 10 % rise in pension account balances corresponds to a 5 % increase in the likelihood of engaging in the risk asset market, alongside a 1.7 % increase in the allocation to such assets. Furthermore, the study identifies notable disparities in the effects of pension insurance on market participation, particularly when considering urban-rural distinctions, with pronounced effects observed in rural households. Additionally, higher pension balances are linked to a heightened risk preference, and the observed heterogeneity in economic development levels aligns with variations in participation in the risk asset market. These findings highlight the significant role of pension insurance in shaping investment behaviours and risk preferences, as well as its potential to bolster domestic demand and stimulate economic growth. This underscores the essential function of pension insurance in financial planning and the formulation of policy.

Keywords: Pension insurance; Risk assets; Household finance; Risk attitudes (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0313592625002073
Full text for ScienceDirect subscribers only

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:eee:ecanpo:v:86:y:2025:i:c:p:2180-2191

DOI: 10.1016/j.eap.2025.05.042

Access Statistics for this article

Economic Analysis and Policy is currently edited by Clevo Wilson

More articles in Economic Analysis and Policy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().