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Bank presence and health

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  • Cramer, Kim Fe

Abstract

This paper demonstrates that increasing bank presence in underserved areas can substantially improve households’ health. I apply a regression discontinuity design to a policy of the Reserve Bank of India. Six years after the policy introduction, treatment districts have 19% more branches than control districts. Households’ probability of suffering from a non-chronic disease in a given month is 36% lower. I show evidence that two understudied aspects of banking play a role: banks provide health insurance to households and credit to hospitals. In equilibrium, I observe an increase in health care demand and supply.

Suggested Citation

  • Cramer, Kim Fe, 2023. "Bank presence and health," LSE Research Online Documents on Economics 119194, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:119194
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    File URL: http://eprints.lse.ac.uk/119194/
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    More about this item

    Keywords

    financial development; banks; health; insurance; credit;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • I10 - Health, Education, and Welfare - - Health - - - General

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