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Health and Financial Strain: Evidence from the Survey of Consumer Finances

Author

Listed:
  • Angela C. Lyons

    () (University of Illinois at Urbana-Champaign, Department of Agricultural and Consumer Economics)

  • Tansel Yilmazer

    () (Purdue University, Consumer Sciences and Retailing)

Abstract

Using data from the Survey of Consumer Finances, this study examines the relationship between health status and financial strain controlling for the dual endogeneity between the two factors. Simultaneous two-stage probit models are estimated for self-reported health status and three measures of financial strain. The results from all three models indicate that poor health significantly increases the probability of financial strain. There is little evidence that financial strain contributes to poor health. The findings suggest that severe health conditions may result in larger financial burdens while large financial burdens are unlikely to accelerate a decline in health status. In the end, health may be contributing to widening financial disparities, especially among the poor who are in poor health.

Suggested Citation

  • Angela C. Lyons & Tansel Yilmazer, 2005. "Health and Financial Strain: Evidence from the Survey of Consumer Finances," Southern Economic Journal, Southern Economic Association, vol. 71(4), pages 873-890, April.
  • Handle: RePEc:sej:ancoec:v:71:4:y:2005:p:873-890
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    References listed on IDEAS

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    Cited by:

    1. Yunhee Chang & Swarn Chatterjee & Jinhee Kim, 2014. "Household Finance and Food Insecurity," Journal of Family and Economic Issues, Springer, vol. 35(4), pages 499-515, December.
    2. Averett, Susan L. & Smith, Julie K., 2012. "Indebted and Overweight: The Link Between Weight and Household Debt," IZA Discussion Papers 6898, Institute for the Study of Labor (IZA).
    3. Jonathan Gruber & Helen Levy, 2009. "The Evolution of Medical Spending Risk," Journal of Economic Perspectives, American Economic Association, pages 25-48.
    4. Blázquez, Maite & Budría, Santiago, 2015. "The effects of over-indebtedness on individual health," Working Papers in Economic Theory 2015/03, Universidad Autónoma de Madrid (Spain), Department of Economic Analysis (Economic Theory and Economic History).
    5. Argys, Laura & Friedson, Andrew & Pitts, M. Melinda, 2016. "Killer Debt: The Impact of Debt on Mortality," FRB Atlanta Working Paper 2016-14, Federal Reserve Bank of Atlanta.
    6. 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.
    7. Noonan, Kelly & Corman, Hope & Reichman, Nancy E., 2016. "Effects of maternal depression on family food insecurity," Economics & Human Biology, Elsevier, pages 201-215.
    8. Ketema, Mengistu & Bauer, Siegfried, 0. "Determinants of Manure and Fertilizer Applications in Eastern Highlands of Ethiopia," Quarterly Journal of International Agriculture, Humboldt-Universität zu Berlin, vol. 50.
    9. Curtis, Marah A. & Corman, Hope & Noonan, Kelly & Reichman, Nancy E., 2010. "Effects of child health on housing in the urban U.S," Social Science & Medicine, Elsevier, pages 2049-2056.
    10. Russell Davidson & Jean-Yves Duclos, 2013. "Testing for Restricted Stochastic Dominance," Econometric Reviews, Taylor & Francis Journals, vol. 32(1), pages 84-125, January.
    11. Averett, Susan L. & Smith, Julie K., 2014. "Financial hardship and obesity," Economics & Human Biology, Elsevier, pages 201-212.
    12. Staudigel, Matthias, 2016. "A soft pillow for hard times? Economic insecurity, food intake and body weight in Russia," Journal of Health Economics, Elsevier, vol. 50(C), pages 198-212.
    13. Staudigel, Matthias, 2015. "A soft pillow for hard times: Effects of economic insecurity on body weight in transitional Russia," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205189, Agricultural and Applied Economics Association;Western Agricultural Economics Association.
    14. repec:eee:socmed:v:193:y:2017:i:c:p:118-126 is not listed on IDEAS
    15. Sangmin Jun & Jungsung Yeo, 2012. "Health Claims Regulations: Voices from Korean Consumers and Experts," Journal of Family and Economic Issues, Springer, vol. 33(2), pages 145-155, June.
    16. Yilmazer, Tansel & Babiarz, Patryk & Liu, Fen, 2015. "The impact of diminished housing wealth on health in the United States: Evidence from the Great Recession," Social Science & Medicine, Elsevier, pages 234-241.
    17. Irina Grafova, 2011. "Financial Strain and Smoking," Journal of Family and Economic Issues, Springer, vol. 32(2), pages 327-340, June.
    18. Angela Lyons & Hyungsoo Kim, 2007. "No Pain, No Strain: Impact of Health on the Financial Security of Older Americans," NFI Working Papers 2007-WP-12, Indiana State University, Scott College of Business, Networks Financial Institute.

    More about this item

    JEL classification:

    • I0 - Health, Education, and Welfare - - General
    • D1 - Microeconomics - - Household Behavior

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