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Precautionary Saving and Health Risk. Evidence from Italian Households Using a Time Series of Cross Sections

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Author Info

  • Vincenzo Atella

    ()
    (Università di Roma "Tor Vergata")

  • Furio C. Rosati

    ()
    (Università di Roma "Tor Vergata")

  • Mariacristina Rossi

    ()
    (Università di Roma "Tor Vergata")

Abstract

In this paper we analyse the importance of precautionary saving in Italy. In contrast to previous studies, we focus on two contemporaneous sources of uncertainty, income and health expenditures, to explain the presence of precautionary saving. The major changes occurred in public health care policies from 1985 to 1996 have caused households to pay a larger share of their outof-the-pocket medical expenditures. We therefore expect consumers to react to this uncertainty by generating precautionary saving.Our results show strong support for the precautionary savinghypothesis as a response to health uncertainty.

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Bibliographic Info

Article provided by SIPI Spa in its journal Rivista di Politica Economica.

Volume (Year): 96 (2006)
Issue (Month): 3 (May-June)
Pages: 113-132

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Handle: RePEc:rpo:ripoec:v:96:y:2006:i:3:p:113-132

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Cited by:
  1. Tullio Jappelli & Luigi Pistaferri & Guglielmo Weber, 2007. "Health care quality, economic inequality, and precautionary saving," Health Economics, John Wiley & Sons, Ltd., vol. 16(4), pages 327-346.
  2. Atella, Vincenzo & Brunetti, Marianna & Maestas, Nicole, 2012. "Household portfolio choices, health status and health care systems: A cross-country analysis based on SHARE," Journal of Banking & Finance, Elsevier, vol. 36(5), pages 1320-1335.

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