Precautionary Saving and Health Risk. Evidence from Italian Households Using a Time Series of Cross Sections
In this paper we analyse the importance of precautionary saving in Italy. In contrast to previous studies, we focus on two contemporaneous sources of uncertainty, income and health expenditures, to explain the presence of precautionary saving. The major changes occurred in public health care policies from 1985 to 1996 have caused households to pay a larger share of their outof-the-pocket medical expenditures. We therefore expect consumers to react to this uncertainty by generating precautionary saving.Our results show strong support for the precautionary savinghypothesis as a response to health uncertainty.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 96 (2006)
Issue (Month): 3 (May-June)
|Contact details of provider:|| |