Title
Household Financial Decision Making Amidst the COVID-19 Pandemic
DOI
https://doi.org/10.1080/1540496X.2020.1784717
Document Type
Article
Source
Emerging Markets Finance and Trade
Publication Date
7-25-2020
ISSN
1558-0938
Issue
10 (Special Issue: Research on Pandemics)
Last Page
2363
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.
Rights
Copyright Taylor & Francis Group, LLC
Recommended Citation
Yue, Pengpeng; Korkmaz, Aslihan Gizem; and Zhou, Haigang, "Household Financial Decision Making Amidst the COVID-19 Pandemic" (2020). Barowsky School of Business | Faculty Scholarship. 4.
https://doi.org/10.1080/1540496X.2020.1784717