An Empirical Analysis on the Change of Chinese Household Investment Preferences ——Based on Expected Utility and the Second Stochastic Dominance Theory
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Abstract With the growth of Chinese residents wealth, the ability against the risk of Chinese residents is also increasing. Does the Chinese residents’ investment psychology also follow this rule? Based on this point, this paper applies the expected utility theory and second stochastic dominance theory, by using the sample of lottery, deposit and stock datum between 1994-2011, to analyze the changes of Chinese residents’ investment preference .At last ,we draw a conclusion that the current Chinese household investment is more rational. Then we summarize a phenomenon of risk preference that is “risk neutral is dominant; risk preference is central; risk avoidance is weakened”. At last we point out the importance of improving and standardizing the capital market.
LI Xin-Guang,HU Ri-Dong,CHEN Jia-An. An Empirical Analysis on the Change of Chinese Household Investment Preferences ——Based on Expected Utility and the Second Stochastic Dominance Theory. Economic Survey, 2014, 31(6): 0137.
2014, Vol. 31 
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