Abstract
Using the 2014 China Family Panel Studies, this study examines the impact of household’s subjective well-being on financial decision. It investigates whether happiness affects household’s decision to participate in risky financial market. This study finds a non-linear relationship between happiness and the probability of financial market participation. The probability of risky financial market participation increases as self-reported happiness measure increases. However, the probability declines slightly at the highest level of self-reported happiness measure. In order to address a potential endogeneity problem, this study uses the Two Stage Least Squaredmodel with two sets of instrumental variables. These findings provide a strong support for the hypothesis that a person’s subjective well-being is one of the major determinants of household’s economic behaviours, and provide an important implication on household portfolio research.
| Original language | English |
|---|---|
| Pages (from-to) | 396-418 |
| Number of pages | 23 |
| Journal | Global Economic Review |
| Volume | 48 |
| Issue number | 4 |
| DOIs | |
| Publication status | Published - 2019 Oct 2 |
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All Science Journal Classification (ASJC) codes
- Business and International Management
- Economics, Econometrics and Finance(all)
- Political Science and International Relations
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Household’s Happiness and Financial Market Participation. / Cui, Wei; Cho, Insook.
In: Global Economic Review, Vol. 48, No. 4, 02.10.2019, p. 396-418.Research output: Contribution to journal › Article
TY - JOUR
T1 - Household’s Happiness and Financial Market Participation
AU - Cui, Wei
AU - Cho, Insook
PY - 2019/10/2
Y1 - 2019/10/2
N2 - Using the 2014 China Family Panel Studies, this study examines the impact of household’s subjective well-being on financial decision. It investigates whether happiness affects household’s decision to participate in risky financial market. This study finds a non-linear relationship between happiness and the probability of financial market participation. The probability of risky financial market participation increases as self-reported happiness measure increases. However, the probability declines slightly at the highest level of self-reported happiness measure. In order to address a potential endogeneity problem, this study uses the Two Stage Least Squaredmodel with two sets of instrumental variables. These findings provide a strong support for the hypothesis that a person’s subjective well-being is one of the major determinants of household’s economic behaviours, and provide an important implication on household portfolio research.
AB - Using the 2014 China Family Panel Studies, this study examines the impact of household’s subjective well-being on financial decision. It investigates whether happiness affects household’s decision to participate in risky financial market. This study finds a non-linear relationship between happiness and the probability of financial market participation. The probability of risky financial market participation increases as self-reported happiness measure increases. However, the probability declines slightly at the highest level of self-reported happiness measure. In order to address a potential endogeneity problem, this study uses the Two Stage Least Squaredmodel with two sets of instrumental variables. These findings provide a strong support for the hypothesis that a person’s subjective well-being is one of the major determinants of household’s economic behaviours, and provide an important implication on household portfolio research.
UR - http://www.scopus.com/inward/record.url?scp=85068766081&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=85068766081&partnerID=8YFLogxK
U2 - 10.1080/1226508X.2019.1640629
DO - 10.1080/1226508X.2019.1640629
M3 - Article
AN - SCOPUS:85068766081
VL - 48
SP - 396
EP - 418
JO - Global Economic Review
JF - Global Economic Review
SN - 1226-508X
IS - 4
ER -