2019-20 coronavirus outbreak

Financial system

Probit

Biology

Actuarial science

Statistics

Probit model

Portfolio

Virology

China

Archaeology

Economics

Beijing

Severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2)

Timeline

Outbreak

Business

Coronavirus disease 2019 (COVID-19)

Mathematics

Politics

Survey data collection

Geography

Political science

Demographic economics

Econometrics

Infectious disease (medical specialty)

Financial economics

Medicine

Finance

Pandemic

Investment (military)

Disease

Pathology

Emerging Markets Finance and Trade

This paper investigates the impact of the COVID-19 pandemic on household investment decisions using a novel survey conducted by the Survey and Research Center for China Household Finance. We use linear probability and probit models to analyze the effects of COVID-19 at the household level. Our results show that households who know someone infected with COVID-19 lose confidence in the economy. They are more likely to change their risk behavior and become risk-averse. Further, COVID-19 increases the probability that a household will change its investment portfolio. More specifically, it causes a 9.15% decrease in the total investment amount.

Household Financial Decision Making Amidst the COVID-19 Pandemic