Does "lottery culture" affect household financial decisions? Evidence from China.

ABSTRACT: In recent years, China's "lottery culture" has developed vigorously. Moreover, the investment participation rate of Chinese families in the formal financial market is low, whereas that in the informal financial market is high. Is there a certain relationship between "lottery culture" and family financial decision-making? If so, what is the underlying mechanism? Based on the 2017 CHFS data and lottery sales data of provinces, this study explores the impact of "lottery culture" on household participation in the formal and informal financial markets and the diversity of household financial portfolios. Results show that "lottery culture" can impede household participation in the formal financial market and the diversity of household financial portfolios while promoting household participation

SUBMITTER: Cao D 

PROVIDER: S-EPMC9565457 | biostudies-literature | 2022

REPOSITORIES: biostudies-literature