<p>The expansion and acceleration of broadband networks have profoundly reshaped household behaviors and lifestyles. Drawing on data from the China Household Finance Survey (CHFS) from 2013 to 2019, this study investigates the effects of the Broadband China policy on household financial risk-taking. Using a staggered Difference-in-Differences (DID) methodology, our findings reveal that the policy has significantly increased both the ownership and share of risky financial assets held by households. The mechanism analysis suggests that the policy facilitates investment convenience, fosters social interaction, enhances access to financial and economic information, and improves financial literacy, all of which collectively drive heightened financial risk-taking. Furthermore, heterogeneity analysis indicates that the policy’s impact is more pronounced among households with greater risk tolerance. This study provides critical insights into the nexus between broadband infrastructure and financial risk-taking, offering important implications for policy development.</p>

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Household Financial Risk-Taking: Does Digital Infrastructure Matter?

  • Taixing Liu,
  • Zhichao Yin,
  • Yu Yan

摘要

The expansion and acceleration of broadband networks have profoundly reshaped household behaviors and lifestyles. Drawing on data from the China Household Finance Survey (CHFS) from 2013 to 2019, this study investigates the effects of the Broadband China policy on household financial risk-taking. Using a staggered Difference-in-Differences (DID) methodology, our findings reveal that the policy has significantly increased both the ownership and share of risky financial assets held by households. The mechanism analysis suggests that the policy facilitates investment convenience, fosters social interaction, enhances access to financial and economic information, and improves financial literacy, all of which collectively drive heightened financial risk-taking. Furthermore, heterogeneity analysis indicates that the policy’s impact is more pronounced among households with greater risk tolerance. This study provides critical insights into the nexus between broadband infrastructure and financial risk-taking, offering important implications for policy development.