Health Insurance Coverage for Low-income Households: Consumption Smoothing and Investment
AbstractI estimate the effects of public health insurance on consumption smoothing and investigate the extent to which the public insurance interacts with private arrangements of self-insurance. Exploiting a dramatic expansion in health insurance coverage in rural China, I find that the introduction of public health insurance helps households completely insure against severe health shocks. The health insurance also reduces the magnitude of decline during a health shock in investments in children's education, agricultural activities and durable goods. The evidence suggests that the benefit of social insurance for low-income households could also come from reducing the use of costly smoothing mechanisms.
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Bibliographic InfoPaper provided by Department of Economics, Norwegian School of Economics in its series Discussion Paper Series in Economics with number 16/2013.
Length: 32 pages
Date of creation: 24 Oct 2013
Date of revision:
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Postal: NHH, Department of Economics, Helleveien 30, N-5045 Bergen, Norway
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More information through EDIRC
Public health insurance; Rural China;
Find related papers by JEL classification:
- D10 - Microeconomics - - Household Behavior - - - General
- I10 - Health, Education, and Welfare - - Health - - - General
- O10 - Economic Development, Technological Change, and Growth - - Economic Development - - - General
This paper has been announced in the following NEP Reports:
- NEP-AGR-2013-11-09 (Agricultural Economics)
- NEP-ALL-2013-11-09 (All new papers)
- NEP-DEV-2013-11-09 (Development)
- NEP-HEA-2013-11-09 (Health Economics)
- NEP-IAS-2013-11-09 (Insurance Economics)
- NEP-PBE-2013-11-09 (Public Economics)
- NEP-TRA-2013-11-09 (Transition Economics)
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