Heterogeneity of the effects of health insurance on household savings: Evidence from rural China
AbstractThis paper estimates the impact of the New Cooperative Medical Scheme (NCMS) on household saving across income quartiles in rural China. We use data from the China Health and Nutrition Survey for the 2006 wave and we run an ordinary least squares regression. We control for the endogeneity of NCMS participation by using an instrumental variable strategy. We find evidence that NCMS has a negative impact on savings of lower-middle-income participants, while it does not affect the poorest households. The negative effect of NCMS on savings of middle-income participants holds when we use propensity score matching estimations as a robustness check.
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Date of creation: Jul 2013
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Rural China; New Cooperative Medical Scheme; health insurance; Chinese savings and consumption; propensity score matching;
This paper has been announced in the following NEP Reports:
- NEP-AGR-2013-08-05 (Agricultural Economics)
- NEP-ALL-2013-08-05 (All new papers)
- NEP-DEV-2013-08-05 (Development)
- NEP-HEA-2013-08-05 (Health Economics)
- NEP-IAS-2013-08-05 (Insurance Economics)
- NEP-TRA-2013-08-05 (Transition Economics)
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