{"title":"Impact of long-term care insurance on the financial asset allocation of middle-aged and elderly households: Evidence from China","authors":"","doi":"10.1016/j.irfa.2024.103516","DOIUrl":null,"url":null,"abstract":"<div><p>In the context of China's aging process, optimizing financial asset allocation of middle-aged and elderly households is an essential way to meet the diversified old-age security needs and do a good job in aging finance. To enrich the understanding of the “limited participation puzzle” in the financial market of middle-aged and elderly households in China, this paper takes the long-term care insurance (LTCI) pilot policy as a quasinatural experiment; takes the China Health and Retirement Longitudinal Study (CHARLS) data from 2011 to 2018 as the research sample; and empirically tests the influence, internal mechanism and heterogeneity of LTCI on the financial asset allocation of middle-aged and elderly households using difference-in-differences (DID) and intermediary effect models. The findings are as follows. First, LTCI can significantly promote middle-aged and elderly households’ participation in risky financial markets, and this finding still holds under a series of robustness tests. Second, LTCI can promote the financial asset allocation of middle-aged and elderly households by improving their heath capital. Third, the effects of LTCI pilot policies on the income level and household registration of middle-aged and elderly households significantly differ. The effect of LTCI is more obvious in the sample of high-income and urban households than in the sample of low- and middle-income and rural households. These results help provide a policy basis for realizing the innovation of the economy and financial market products in a deeply aging society and facilitating organic connections between these products.</p></div>","PeriodicalId":48226,"journal":{"name":"International Review of Financial Analysis","volume":null,"pages":null},"PeriodicalIF":7.5000,"publicationDate":"2024-08-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"International Review of Financial Analysis","FirstCategoryId":"96","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S1057521924004484","RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"BUSINESS, FINANCE","Score":null,"Total":0}
引用次数: 0
Abstract
In the context of China's aging process, optimizing financial asset allocation of middle-aged and elderly households is an essential way to meet the diversified old-age security needs and do a good job in aging finance. To enrich the understanding of the “limited participation puzzle” in the financial market of middle-aged and elderly households in China, this paper takes the long-term care insurance (LTCI) pilot policy as a quasinatural experiment; takes the China Health and Retirement Longitudinal Study (CHARLS) data from 2011 to 2018 as the research sample; and empirically tests the influence, internal mechanism and heterogeneity of LTCI on the financial asset allocation of middle-aged and elderly households using difference-in-differences (DID) and intermediary effect models. The findings are as follows. First, LTCI can significantly promote middle-aged and elderly households’ participation in risky financial markets, and this finding still holds under a series of robustness tests. Second, LTCI can promote the financial asset allocation of middle-aged and elderly households by improving their heath capital. Third, the effects of LTCI pilot policies on the income level and household registration of middle-aged and elderly households significantly differ. The effect of LTCI is more obvious in the sample of high-income and urban households than in the sample of low- and middle-income and rural households. These results help provide a policy basis for realizing the innovation of the economy and financial market products in a deeply aging society and facilitating organic connections between these products.
期刊介绍:
The International Review of Financial Analysis (IRFA) is an impartial refereed journal designed to serve as a platform for high-quality financial research. It welcomes a diverse range of financial research topics and maintains an unbiased selection process. While not limited to U.S.-centric subjects, IRFA, as its title suggests, is open to valuable research contributions from around the world.