The interconnection between subjective well-being and household decisions to invest in risky financial assets: The experience of China

The authors decided to investigate the relationship between a person’s subjective idea of well-being and some aspects of their economic behavior, in particular, participation in risky forms of investment. The results of the Chinese Household Social Survey 2017 (CGSS-2017) were used as the data source. The results showed that subjective assessments of well-being are positively correlated with (1) the likelihood of households participating in risky financial investments, (2) the proportion of households making risky financial investments. The authors also found that the age of respondents, their marital status, total family income, health status, housing conditions, participation in voluntary medical and pension insurance programs correlate with a person’s subjective idea of well-being and, as a result, affect the propensity and scale of investment of family budget into risky financial assets.