The utilization level of medical resources, health capital and financial asset allocation of middle-aged and elderly households

Addressing the challenges of aging and fostering a healthy China necessitates redefining the socioeconomic role of middle-aged and elderly individuals. Despite the close link between the distribution of household financial assets and financial market stability, few studies have examined the low participation of middle-aged and elderly households in financial markets through the lens of medical resource utilization. This study was conducted to analyze the influence of the utilization level of medical resources and health capital on the financial asset allocation of these households, exploring the underlying mechanisms and differential impacts. Utilizing the 2015 and 2018 China Health and Retirement Longitudinal Study (CHARLS) datasets, this study empirically assessed the impacts of medical resource utilization and health capital on financial asset allocation via logit and Tobit models. A mediating effect model was employed to delve into the mechanisms of action. The findings indicate that medical resource utilization and health capital positively impact the financial market participation and risky asset holdings of middle-aged and elderly households, and these findings are robust. Regarding the mechanisms of action, medical resources influence allocation via health capital. Heterogeneity analysis reveals that the effects on high-income and urban households are more obvious, whereas those on middle- and low-income and rural households are not. This study offers a foundation for policy decisions promoting the coordinated development of a healthy China and the financing of the aging population. Recommendations include expanding primary medical services, enhancing households’ health capital, advancing financial reform and innovation, optimizing the asset allocation of middle-aged and elderly households, and addressing urban‒rural income disparities to facilitate societal and economic health.