An Investigation of Influencing Factors on Household Portfolio in China

摘要

The purpose of this article is to cognize the characteristics of household portfolio, acknowledge the factors that affect the Chinese household investments, and analyze the household investment structure of different populations. Past research in China has appropriately discuss the present situation and variation tendency of household investment, but few research has exploited its influencing factors with systematic econometric models. Using cross-section data from nationwide survey in China, this paper employs Tobit regression for censored data of household investments, and particularly add to the model the human capital measured as educational investments which has been ignored by people. The empirical results show that the Tobit model outperforms OLS and provide a fuller understanding of the factors that affect the Chinese household investments.