TY - JOUR
T1 - Household Financial Decision Making Amidst the COVID-19 Pandemic
AU - Yue, Pengpeng
AU - Gizem Korkmaz, Aslihan
AU - Zhou, Haigang
PY - 2020/8/8
Y1 - 2020/8/8
N2 - This paper investigates the impact of the COVID-19 pandemic on household investment decisions using a novel survey conducted by the Survey and Research Center for China Household Finance. We use linear probability and probit models to analyze the effects of COVID-19 at the household level. Our results show that households who know someone infected with COVID-19 lose confidence in the economy. They are more likely to change their risk behavior and become risk-averse. Further, COVID-19 increases the probability that a household will change its investment portfolio. More specifically, it causes a 9.15% decrease in the total investment amount.
AB - This paper investigates the impact of the COVID-19 pandemic on household investment decisions using a novel survey conducted by the Survey and Research Center for China Household Finance. We use linear probability and probit models to analyze the effects of COVID-19 at the household level. Our results show that households who know someone infected with COVID-19 lose confidence in the economy. They are more likely to change their risk behavior and become risk-averse. Further, COVID-19 increases the probability that a household will change its investment portfolio. More specifically, it causes a 9.15% decrease in the total investment amount.
KW - coronavirus
KW - COVID-19
KW - Financial decision making
KW - pandemic
KW - risk behavior
UR - https://www.scopus.com/inward/record.uri?partnerID=HzOxMe3b&scp=85088527531&origin=inward
UR - https://www.scopus.com/inward/citedby.uri?partnerID=HzOxMe3b&scp=85088527531&origin=inward
U2 - 10.1080/1540496X.2020.1784717
DO - 10.1080/1540496X.2020.1784717
M3 - Article
SN - 1540-496X
VL - 56
SP - 2363
EP - 2377
JO - Emerging Markets Finance and Trade
JF - Emerging Markets Finance and Trade
IS - 10
ER -