The impact of Chinese public expenditures on household investment in risky financial assets: Evidence from a national survey
Qianhui Ma,
Yeung Ying,
Rui Yao
Abstract:Using data from the 2012, 2013, 2015, 2017, 2018, and 2021 Chinese General Social Survey (CGSS), this paper investigates the effect of public expenditures on household investment in risky financial assets. Our findings show that a higher level of public expenditures significantly increases household investment in stocks and other risky financial assets and that the respondent's overconfidence in their financial well‐being partially mediates such an effect. We further provide evidence that the influence of publ… Show more
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