Household Financial Decision Making Amidst the COVID-19 Pandemic

By Pengpeng Yue, Aslihan Gizem Korkmaz, Haigang Zhou. Emerging markets finance & trade, 2020

149 citations recorded by the source corpus.

ABSTRACT 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.

Subfields: Accounting, Economics and Econometrics, Soil Science

View Paper: https://www.semanticscholar.org/paper/bb131c0b4c5b4067e2c70ce4871311d109b41a99

Citations in the corpus

• A Note on the Asian Market Volatility During the COVID-19 Pandemic (2020, unknown): “…significantly affected global economies; see, for instance, Mishra et al. (2020), Salisu & Akanni (2020), Chen et al. (2020), Wang et al. (2020), Yue et al. (2020), Yu et al. (2020), Xiong et al. (2020), Shen et al. (2020), Gu et al. (2020), Haroon & Rizvi (2020), Iyke (2020), He et al. (2020),…”