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Your Money or Your Life: Managing Health, Managing Money

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  • Irina Grafova

Abstract

Using the Panel Study of Income Dynamics, this paper examines the relationship between non-collateralized debt (NCD) and health behaviors. The results reveal that households whose members tend to lead less healthy lifestyles are more likely to hold NCD. There are three possible underlying hypotheses that may explain these relationships: (a) common factors, such as preferences, shaping both debt and poorer health behaviors; (b) poorer health and health behaviors causing debt; and (c) debt causing poorer health behaviors. Our findings are not consistent with a causal relationship between health behaviors and NCD. It is likely that other factors, such as time preferences, risk aversion and self-control may underlie the observed correlation. Copyright Springer Science+Business Media, LLC 2007

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  • Irina Grafova, 2007. "Your Money or Your Life: Managing Health, Managing Money," Journal of Family and Economic Issues, Springer, vol. 28(2), pages 285-303, June.
    • Handle: RePEc:kap:jfamec:v:28:y:2007:i:2:p:285-303
    DOI: 10.1007/s10834-007-9060-0
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    14. Averett, Susan L. & Smith, Julie K., 2012. "Indebted and Overweight: The Link Between Weight and Household Debt," IZA Discussion Papers 6898, Institute of Labor Economics (IZA).
    15. Averett, Susan L. & Smith, Julie K., 2014. "Financial hardship and obesity," Economics & Human Biology, Elsevier, vol. 15(C), pages 201-212.
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    21. Ming-Chang Tsai & Rachel Dwyer & Ruey-Ming Tsay, 2016. "Does Financial Assistance Really Assist? The Impact of Debt on Wellbeing, Health Behavior and Self-Concept in Taiwan," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 125(1), pages 127-147, January.
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    25. Clayton, Maya & Liñares-Zegarra, José & Wilson, John O.S., 2015. "Does debt affect health? Cross country evidence on the debt-health nexus," Social Science & Medicine, Elsevier, vol. 130(C), pages 51-58.

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