The Impact of Urban Household Income on Household Risk Financial Asset Allocation in China—Empirical Research Based on Probit and Tobit

The increase of per capital disposable income makes the household demand for risky financial assets show an increasing trend, but the risk financial market is still limited participation. In this paper, the CHFS database of Southwestern University of Finance and Economics is selected, the nonlinear Probit model and the Tobit model of restricted dependent variables are used for empirical analysis, and the Logit model is used for robustness test. Combined with the flow preference and consumption-savings theory, on the basis of analyzing the current situation of household income and risk asset allocation. We find that property, transfer and wage income all have a significant positive impact on the allocation and depth of risky financial assets at the significance level of 1%, which suggests that in order to improve the allocation and depth of urban households' risky financial assets, we should focus on increasing the contribution of property income to total household income.