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

Diana Cheung () and Ysaline Padieu ()
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Diana Cheung: Centre d'Economie de la Sorbonne, https://centredeconomiesorbonne.cnrs.fr
Ysaline Padieu: Centre d'Economie de la Sorbonne, https://centredeconomiesorbonne.cnrs.fr

Documents de travail du Centre d'Economie de la Sorbonne from Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne

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

Keywords: Rural China; New Cooperative Medical Scheme; health insurance; Chinese savings and consumption; propensity score matching (search for similar items in EconPapers)
JEL-codes: C21 D1 I18 O53 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2013-07
New Economics Papers: this item is included in nep-agr, nep-dev, nep-hea, nep-ias, nep-mfd, nep-pbe and nep-tra
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Citations: View citations in EconPapers (4) Track citations by RSS feed

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Persistent link: https://EconPapers.repec.org/RePEc:mse:cesdoc:13056

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