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E-Wallet adoption and health insurance uptake in India: Evidence from a copula regression analysis

Author

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  • Sengupta, Reshmi
  • Rooj, Debasis

Abstract

India has made incredible progress in digitalization, particularly in adopting digital financial tools, including e-wallets. However, the behavioral implications of such a transition on household financial decisions are unexplored. In this study, we examine the impact of e-wallets on health insurance enrollment using data from a nationally representative survey. Employing a copula regression methodology that accounts for unobserved heterogeneity and nonlinear covariate effects, we find that households adopting e-wallets are more likely to enroll in voluntary health insurance. We further find support for greater financial literacy, enhanced household resilience to health shocks leading to lower medical loans, and greater social interactions as potential mechanisms through which e-wallets induce higher enrollment in voluntary health insurance. These findings provide policymakers with significant actionable insights, demonstrating how digital financial tools can enhance financial inclusion and improve healthcare investment through risk protection strategies in emerging economies.

Suggested Citation

  • Sengupta, Reshmi & Rooj, Debasis, 2025. "E-Wallet adoption and health insurance uptake in India: Evidence from a copula regression analysis," Economic Analysis and Policy, Elsevier, vol. 87(C), pages 2636-2657.
    • Handle: RePEc:eee:ecanpo:v:87:y:2025:i:c:p:2636-2657
    DOI: 10.1016/j.eap.2025.08.026
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    Keywords

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    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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