Author:
Xing Lu,Han DongHao,Xie Hui
Abstract
AbstractThis study uses a two-step approach to construct a multi-period double-difference model and introduces a quasi-natural experiment of the Broadband China pilot policy to investigate whether household financial market participation at the urban level is affected by the digital economy, which is significant for promoting Chinese households' shift from savings to investment and alleviating the long-standing problem of insufficient household financial market participation in China. In terms of direct impact, the digital economy increases the household financial market participation rate of urban residents by 3.26%, and increases the financial market participation rate of highly financially literate households by 2.14%; in terms of indirect impact, the development of the digital economy increases the total number of household smart Internet devices by 8.27%, and similarly increases the attention to household financial information by a significant 4.22%, which further positively influences the household financial market participation rate. This paper also evaluates the individual and regional differences of the digital economy on household financial market participation, and the estimated causal effect of the digital economy on household financial market participation is purer, which expands the scope of research on the digital economy and household financial market participation, and provides a certain reference basis and policy inspiration for the government to promote the construction of the digital economy.
Publisher
Springer Science and Business Media LLC
Reference26 articles.
1. Samuelson, P. A. Lifetime portfolio selection by dynamic stochastic programming. Re. Econ. Stat. 51, 239–246 (1969).
2. Tobin, J. Estimation of relationships for limited dependent variables. Econometrica 31, 24–36 (1958).
3. Sharp, W. Capital asset prices: a theory of market equilibrium under conditions of risk. J. Financ. 19, 425–442 (1964).
4. Lu, X., Guo, J. & Gan, L. International comparison of household asset allocation: Micro-evidence from cross-country comparisons. Emerg. Mark. Rev. 43, 100691 (2020).
5. Shen, Y., Hu, W. & Zhang, Y. Digital finance, household income and household risky financial asset investment. Procedia Comput. Sci. 202, 244–251 (2022).