Research on the Wealth Distribution of Chinese Urban Households: A Behavioral Perspective
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| Title | Research on the Wealth Distribution of Chinese Urban Households: A Behavioral Perspective
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| Author | Xiao Zhengyan and Liu Kai |
| Organization | The Center for Applied Statistics, Renmin University of China; Department of economics, Cambridge University |
| Email | zhengyanxiao@gmail.com；kl363@cam.ac.uk |
| Key Words | Inequality; Wealth Distribution; Subjective and Behavioral Characteristics; Investment Participation; Risk Appetite |
| Abstract | We first provide a theoretical framework to illustrate how various factors affect and determine wealth distribution in the micro-static level and also macro-dynamic level. By the empirical analysis of the 2007 survey data from Aordo Research Center of Investment, we then estimate the wealth function of Chinese urban households; study the impacts of four broad categories of factors on the wealth level of urban households in the micro-static level; and particularly examine the important role of householders’ subjective and behavioral characteristics in the process of wealth accumulation. We find that it will benefit the growth of wealth level to increase householders’ investment participation and risk appetite. Moreover, compared with the households of low income or in relatively poor regions, the positive impacts of investment participation and risk appetite on the wealth level of households of high income or in developed regions are more significant. At last, we make some suggestions to the government on how to promote households’ wealth level. |
| Serial Number | WP246 |
| Time | 2012-06-12 |
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