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Health Insurance and Agricultural Investments: Evidence from Rural Thailand

Author

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  • Liu, K.
  • Prommawin, B.
  • Schroyen, F.

Abstract

Exploiting the 2001 universal health insurance reform in Thailand as a source of identification, we estimate the effects of health insurance coverage on agricultural production decisions and welfare. Our estimates suggest that the reform led to long-run increases in total cultivation investments and output, and that households shifted their cultivation portfolio towards riskier crops. We explain these findings using a model of agricultural investment, highlighting the important roles of health insurance in terms of mitigating background medical expenditure risk and improving health. We also find that the reform improved households' welfare by reducing debts and defaults on loans.

Suggested Citation

  • Liu, K. & Prommawin, B. & Schroyen, F., 2023. "Health Insurance and Agricultural Investments: Evidence from Rural Thailand," Cambridge Working Papers in Economics 2327, Faculty of Economics, University of Cambridge.
    • Handle: RePEc:cam:camdae:2327
    Note: kl450, bp339
    as

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    File URL: https://www.econ.cam.ac.uk/research-files/repec/cam/pdf/cwpe2327.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Health insurance; Risk-taking; Cultivation; Investments.;
    All these keywords.

    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • G5 - Financial Economics - - Household Finance
    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

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