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 |
|---|---|
| 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 |
