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The Effect of Transportation Benefits on Health and Consumption among the Elderly: Quasi-Experimental Evidence from Urban China

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  • YIN Ting
  • YIN Zhigang
  • ZHANG Junchao

Abstract

This study estimates the causal effect of transportation subsidies or similar benefits on the health of elderly people. We exploit a discontinuity in the probability of receiving transportation benefits induced by an age-based policy to take into account the endogeneity of treatment status. Our baseline IV results indicate that receiving public transportation benefits significantly improves elderly people's health condition by approximately 10 percentage points. The results are robust under different specifications and placebo tests. Further tests on possible channels show that the health effect is driven by increasing food consumption and health care utilization, but not by the amount of exercise done.

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  • YIN Ting & YIN Zhigang & ZHANG Junchao, 2018. "The Effect of Transportation Benefits on Health and Consumption among the Elderly: Quasi-Experimental Evidence from Urban China," Discussion papers 18037, Research Institute of Economy, Trade and Industry (RIETI).
    • Handle: RePEc:eti:dpaper:18037
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    File URL: https://www.rieti.go.jp/jp/publications/dp/18e037.pdf
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    References listed on IDEAS

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    Cited by:

    1. Shin, Eun Jin, 2021. "Exploring the causal impact of transit fare exemptions on older adults’ travel behavior: Evidence from the Seoul metropolitan area," Transportation Research Part A: Policy and Practice, Elsevier, vol. 149(C), pages 319-338.

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