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Heterogeneity of the effects of health insurance on household savings: Evidence from rural China

Author

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  • Diana Cheung

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

  • Ysaline Padieu

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

Abstract

This paper estimates the impact of the New Cooperative Medical Scheme (NCMS) on household saving across income quartiles in rural China. We use data from the China Health and Nutrition Survey for the 2006 wave and we run an ordinary least squares regression. We control for the endogeneity of NCMS participation by using an instrumental variable strategy. We find evidence that NCMS has a negative impact on savings of lower-middle-income participants, while it does not affect the poorest households. The negative effect of NCMS on savings of middle-income participants holds when we use propensity score matching estimations as a robustness check.

Suggested Citation

  • Diana Cheung & Ysaline Padieu, 2013. "Heterogeneity of the effects of health insurance on household savings: Evidence from rural China," Post-Print halshs-00848061, HAL.
    • Handle: RePEc:hal:journl:halshs-00848061
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00848061
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    Cited by:

    1. repec:bla:glopol:v:8:y:2017:i::p:23-29 is not listed on IDEAS
    2. Joan Costa‐Font & Edward C. Norton & Luigi Siciliani & Joan Costa‐Font & Cristina Vilaplana‐Prieto, 2017. "Does the Expansion of Public Long‐Term Care Funding Affect Saving Behaviour?," Fiscal Studies, Institute for Fiscal Studies, vol. 38, pages 417-443, September.
    3. Panos Kanavos & Olivier Wouters & Olivier J. Wouters & Martin McKee, 2017. "Private Financing of Health Care in Times of Economic Crisis: a Review of the Evidence," Global Policy, London School of Economics and Political Science, vol. 8(s2), pages 23-29, March.

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