EconPapers    
Economics at your fingertips  
 

Household portfolio choices, health status and health care systems: A cross-country analysis based on SHARE

Vincenzo Atella (), Marianna Brunetti () and Nicole Maestas

Journal of Banking & Finance, 2012, vol. 36, issue 5, 1320-1335

Abstract: Health risk is increasingly viewed as an important form of background risk that affects household portfolio decisions. However, its role might be mediated by the presence of a protective full-coverage national health service that could reduce households’ probability of incurring current and future out-of-pocket medical expenditures. We use SHARE data to study the influence of current health status and future health risk on the decision to hold risky assets, across ten European countries with different health systems, each offering a different degree of protection against out-of-pocket medical expenditures. We find robust empirical evidence that perceived health status matters more than objective health status and, consistent with the theory of background risk, health risk affects portfolio choices only in countries with less protective health care systems. Furthermore, portfolio decisions consistent with background risk models are observed only with respect to middle-aged and highly-educated investors.

Keywords: Household portfolios; Health status; National health care systems (search for similar items in EconPapers)
JEL-codes: D14 I13 G11 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (14) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S037842661100344X
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Household Portfolio Choices, Health status and Health Care Systems A Cross-Country Analysis Based on SHARE (2011) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jbfina:v:36:y:2012:i:5:p:1320-1335

Access Statistics for this article

Journal of Banking & Finance is currently edited by Ike Mathur

More articles in Journal of Banking & Finance from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

 
Page updated 2019-04-23
Handle: RePEc:eee:jbfina:v:36:y:2012:i:5:p:1320-1335