Effects of National Health Insurance on precautionary saving: new evidence from Taiwan

Chung-Ming Kuan () and Chien-Liang Chen

Empirical Economics, 2013, vol. 44, issue 2, 943 pages

Abstract: In this article, we evaluate the crowd-out effects of the National Health Insurance (NHI) on household precautionary saving in Taiwan. Our analysis differs from existing studies in two respects. First, we do not exclude the households with negative saving that are about 18.9% of the entire sample. Second, we conduct a more complete treatment effect analysis. We estimate both average treatment effect (ATE) and quantile treatment effect (QTE) using the difference-in-differences method. We also partition some covariates (household income and the age of household head) into different groups and estimate the group-wise ATEs and QTEs. While supporting the existing finding that the NHI has negative impact on households saving, our empirical result shows that the QTEs are heterogeneous across saving quantiles, such that higher savers tend to have greater reduction in saving after the NHI is enforced. It is also found that the NHI has greater impact on the households with higher income and those with retiring heads, especially on high savers in these groups. Copyright Springer-Verlag 2013

Keywords: Average treatment effect; Difference-in-differences; National Health Insurance; Precautionary saving; Quantile treatment effect; D12; I18; I38 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (10)

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DOI: 10.1007/s00181-011-0533-5

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