The impact of health insurance on stockholding: a regression discontinuity approach
- Using data from the US Health and Retirement Study, we study the causal effect of increased health insurance coverage through Medicare and the associated reduction in health-related background risk on financial risk-taking. Given the onset of Medicare at age 65, we identify our effect of interest using a regression discontinuity approach. We find that getting Medicare coverage induces stockholding for those with at least some college education, but not for their less-educated counterparts. Hence, our results indicate that a reduction in background risk induces financial risk-taking in individuals for whom informational and pecuniary stock market participation costs are relatively low.
Author: | Dimitris Christelis, Dimitris Georgarakos, Anna Sanz-de-Galdeano |
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URN: | urn:nbn:de:hebis:30:3-353661 |
URL: | http://ssrn.com/abstract=2522933 |
Parent Title (English): | Center for Financial Studies (Frankfurt am Main): CFS working paper series ; No. 488 |
Series (Serial Number): | CFS working paper series (488) |
Publisher: | Center for Financial Studies |
Place of publication: | Frankfurt, M. |
Document Type: | Working Paper |
Language: | English |
Year of Completion: | 2014 |
Year of first Publication: | 2014 |
Publishing Institution: | Universitätsbibliothek Johann Christian Senckenberg |
Release Date: | 2014/11/11 |
Tag: | Health Insurance; Household Finance; Medicare; Regression Discontinuity; Stockholding |
Issue: | November 9, 2014 |
Page Number: | 41 |
HeBIS-PPN: | 351054081 |
Institutes: | Wirtschaftswissenschaften / Wirtschaftswissenschaften |
Wissenschaftliche Zentren und koordinierte Programme / Center for Financial Studies (CFS) | |
Dewey Decimal Classification: | 3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft |
Sammlungen: | Universitätspublikationen |
Licence (German): | Deutsches Urheberrecht |