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How does credit availability affect households holding risky assets? The heterogeneous roles of household Income

Yamaguchi journal of economics, business administrations & laws Volume 70 Issue 6 Page 477-507
published_at 2022-03-31
Available 2026-03-31
[fulltext] 1.42 MB
Title
How does credit availability affect households holding risky assets? The heterogeneous roles of household Income
Abstract
As income levels increase, numerous households will consider investing in risky assets. Credit availability, especially for high-income households, is playing an increasingly important role in enhancing households holdings of risky assets (HHRA). The purpose of this study is to investigate the impact of credit availability on HHRA. In this study, the data from the China Household Finance Survey in 2017 is utilized, and the approach of logit regression is employed to produce more accurate estimates. Meanwhile, this study also explores the heterogeneous roles of household income. The results show that the impact of credit availability on HHRA varies by household income. As household income increases from low to high, the effect of credit availability on HHRA transfers from negative to positive. Besides, the results also suggest that for high-income households, credit availability moderated with the attention to financial and economic information positively contributes to HHRA. Thus, it implies that policymakers and financial institutions are encouraged to expand access for households to invest in risky assets, enhance households’ availability of credit, and build more financing channels.
Creators Chen Fuzhong
Creators Lu Xiuli
Creators Li Haifeng
Affiliate Master Yamaguchi University
[kakenhi]15501 grid.268397.1
Source Identifiers [PISSN] 0513-1758 [NCID] AN00243258
Creator Keywords
Credit availability Risky assets Household income Logit regression
Resource Type departmental bulletin paper
Publishers The Economic Society of Yamaguchi University
Date Issued 2022-03-31
File Version Version of Record
Access Rights embargoed access