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Does COVID-19 Affect Household Financial Behaviors? Fresh Evidence From China

Author

Listed:
  • Hua Guo
  • Yang Zhang
  • Yanling Peng
  • Tong Luo
  • Hong Wang

Abstract

Based on online survey data from 2020, the present study employed a logit model to examine the effects of COVID-19 on household financial behaviors in China. Additionally, the KHB (Kohler, Karlson, Holm) model was employed to explore the pathway through which COVID-19 affects household financial behaviors. These analyses revealed that household saving and borrowing behaviors were more sensitive to COVID-19 than insurance and investment behaviors. Moreover, the effects of COVID-19 on household saving and investment behaviors were found to be mediated by attitudes toward COVID-19. These findings suggest that more effective measures to reduce households’ panic attitude to public health emergencies can diminish fluctuations in household financial behaviors in the short term.

Suggested Citation

  • Hua Guo & Yang Zhang & Yanling Peng & Tong Luo & Hong Wang, 2022. "Does COVID-19 Affect Household Financial Behaviors? Fresh Evidence From China," SAGE Open, , vol. 12(3), pages 21582440221, August.
    • Handle: RePEc:sae:sagope:v:12:y:2022:i:3:p:21582440221119481
    DOI: 10.1177/21582440221119481
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