Analysis of household demographic structure on risky financial asset allocation based on probit and tobit models

This study employs Probit and Tobit models to investigate the impact of household demographic structure on the allocation of risky financial assets. Given the evolving Chinese societal landscape, demographic shifts hold profound implications for financial asset allocation, particularly in the context of gradually relaxed new reproductive policies. Utilizing data from the "China Financial Survey" in 2019, this paper conducts empirical research from two perspectives: the propensity of households to engage in risky financial assets and the proportion of investment in such assets. The Probit model uncovers relationships between factors such as family size, elderly dependency ratio, child dependency ratio, and gender of family children with the participation rate in risk assets. On the other hand, the Tobit model reveals connections between household demographic structure and the proportion of investment in risky financial assets. The findings contribute to offering more precise and effective recommendations for household asset allocation, introducing novel perspectives and methods for family financial planning and risk management.