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Private Medical Insurance and Saving: Evidence from the British Household Panel Survey

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Author Info

  • Alessandra Guariglia

    ()
    (University of Kent, Canterbury)

  • Mariacristina Rossi

    ()
    (University of Rome II - Faculty of Economics)

Abstract

This paper uses the British Household Panel Survey for the years 1996 to 2000 to investigate whether individuals in the UK save for precautionary motives against uncertain medical costs. In particular, we test the hypothesis that those individuals who are not covered by private medical insurance, and who are therefore more exposed to facing unexpected health care expenditures or loss of income while waiting for treatment, tend to save more than those who are covered. According to our findings, which are based on a wide range of econometric specifications, there is a positive association between insurance coverage and saving, suggesting that private medical insurance does not crowd out private saving. This relationship is however weaker in areas where people feel the quality of medical facilities to be poor and in rural areas.

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Bibliographic Info

Paper provided by Tor Vergata University, CEIS in its series CEIS Research Paper with number 39.

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Length: 36
Date of creation: 20 Nov 2003
Date of revision:
Handle: RePEc:rtv:ceisrp:39

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Postal: CEIS - Centre for Economic and International Studies - Faculty of Economics - University of Rome "Tor Vergata" - Via Columbia, 2 00133 Roma
Phone: +390672595601
Fax: +39062020687
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Web page: http://www.ceistorvergata.it
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Postal: CEIS - Centre for Economic and International Studies - Faculty of Economics - University of Rome "Tor Vergata" - Via Columbia, 2 00133 Roma
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Web: http://www.ceistorvergata.it

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Keywords: precautionary saving; private medical insurance;

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References

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Citations

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Cited by:
  1. Hsu, Minchung, 2011. "Health insurance and precautionary saving: a structural analysis," MPRA Paper 32975, University Library of Munich, Germany.
  2. Wagstaff, Adam & Pradhan, Menno, 2005. "Health insurance impacts on health and nonmedical consumption in a developing country," Policy Research Working Paper Series 3563, The World Bank.
  3. Chung-Ming Kuan & Chien-Liang Chen, 2013. "Effects of National Health Insurance on precautionary saving: new evidence from Taiwan," Empirical Economics, Springer, vol. 44(2), pages 921-943, April.
  4. Hsu, Minchung, 2008. "Health Insurance, the Social Welfare System and Household Saving," MPRA Paper 21281, University Library of Munich, Germany, revised 2010.
  5. Trinh Le, 2007. "Does New Zealand have a household saving crisis?," Macroeconomics Working Papers 23081, East Asian Bureau of Economic Research.
  6. Bai, Chong-En & Wu, Binzhen, 2014. "Health insurance and consumption: Evidence from China’s New Cooperative Medical Scheme," Journal of Comparative Economics, Elsevier, vol. 42(2), pages 450-469.
  7. Loretti I. Dobrescu, 2012. "To love or to pay: Savings and health care in older age," Discussion Papers 2012-51, School of Economics, The University of New South Wales.

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