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The Effect of Transportation Benefits on Health and Consumption among the Elderly: Quasi-Experimental Evidence from Urban China

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  • YIN Ting
  • YIN Zhigang
  • ZHANG Junchao

Abstract

This study estimates the causal effect of transportation subsidies or similar benefits on the health of elderly people. We exploit a discontinuity in the probability of receiving transportation benefits induced by an age-based policy to take into account the endogeneity of treatment status. Our baseline IV results indicate that receiving public transportation benefits significantly improves elderly people's health condition by approximately 10 percentage points. The results are robust under different specifications and placebo tests. Further tests on possible channels show that the health effect is driven by increasing food consumption and health care utilization, but not by the amount of exercise done.

Suggested Citation

  • YIN Ting & YIN Zhigang & ZHANG Junchao, 2018. "The Effect of Transportation Benefits on Health and Consumption among the Elderly: Quasi-Experimental Evidence from Urban China," Discussion papers 18037, Research Institute of Economy, Trade and Industry (RIETI).
    • Handle: RePEc:eti:dpaper:18037
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    File URL: https://www.rieti.go.jp/jp/publications/dp/18e037.pdf
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    References listed on IDEAS

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    1. Ian W. H. Parry & Kenneth A. Small, 2009. "Should Urban Transit Subsidies Be Reduced?," American Economic Review, American Economic Association, vol. 99(3), pages 700-724, June.
    2. Michael L. Anderson, 2014. "Subways, Strikes, and Slowdowns: The Impacts of Public Transit on Traffic Congestion," American Economic Review, American Economic Association, vol. 104(9), pages 2763-2796, September.
    3. Coronini-Cronberg, S. & Millett, C. & Laverty, A.A. & Webb, E., 2012. "The impact of a free older persons' bus pass on active travel and regular walking in England," American Journal of Public Health, American Public Health Association, vol. 102(11), pages 2141-2148.
    4. Imbens, Guido W & Angrist, Joshua D, 1994. "Identification and Estimation of Local Average Treatment Effects," Econometrica, Econometric Society, vol. 62(2), pages 467-475, March.
    5. Philip Oreopoulos, 2006. "Estimating Average and Local Average Treatment Effects of Education when Compulsory Schooling Laws Really Matter," American Economic Review, American Economic Association, vol. 96(1), pages 152-175, March.
    6. Judith Green & Alasdair Jones & Helen Roberts, 2014. "More than A to B: the role of free bus travel for the mobility and wellbeing of older citizens in London," LSE Research Online Documents on Economics 64155, London School of Economics and Political Science, LSE Library.
    7. Avraham Ebenstein, 2009. "When is the Local Average Treatment Close to the Average?: Evidence from Fertility and Labor Supply," Journal of Human Resources, University of Wisconsin Press, vol. 44(4).
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    Cited by:

    1. Shin, Eun Jin, 2021. "Exploring the causal impact of transit fare exemptions on older adults’ travel behavior: Evidence from the Seoul metropolitan area," Transportation Research Part A: Policy and Practice, Elsevier, vol. 149(C), pages 319-338.

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