Precautionary Saving and Health Insurance: A Portfolio Choice Perspective

Jiaping Qiu ()
Additional contact information
Jiaping Qiu: DeGroote School of Business, McMaster University, Hamilton, Ontario L8S 4M4, Canada

Frontiers of Economics in China-Selected Publications from Chinese Universities, 2016, vol. 11, issue 2, 232-264

Abstract: This paper analyzes the impact of health insurance on household portfolio choice. Using the U.S. Survey of Consumer Finance and Health Retirement Survey databases, it finds that insured households are more likely to own stocks and invest a larger proportion of financial assets in stocks than uninsured households do. The results remain strong even after controlling for household characteristics and reverse causality. Further, the results are robust across different survey years and data sources. It suggests that a precautionary motive is strong in household portfolio choice decisions.

Keywords: precautionary motive; health insurance; portfolio choice (search for similar items in EconPapers)
JEL-codes: G11 I10 I18 (search for similar items in EconPapers)
Date: 2016
References: Add references at CitEc
Citations:

Downloads: (external link)
http://journal.hep.com.cn/fec/EN/10.3868/s060-005-016-0015-0 (application/pdf)

Related works:
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:fec:journl:v:11:y:2016:i:2:p:232-264

Access Statistics for this article

Frontiers of Economics in China-Selected Publications from Chinese Universities is currently edited by LONG Jie

More articles in Frontiers of Economics in China-Selected Publications from Chinese Universities from Higher Education Press
Bibliographic data for series maintained by Frank H. Liu ().