Saving Behaviour and Biomarkers: A High-Dimensional Bayesian Analysis of British Panel Data

Sarah Brown (), Pulak Ghosh (), Daniel Gray (), Bhuvanesh Pareek () and Jennifer Roberts
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Pulak Ghosh: Indian Institute of Management (IIMB), Bangalore, India
Daniel Gray: Department of Economics, University of Sheffield
Bhuvanesh Pareek: Indian Institute of Management (IIM), Indore, India

No 2017005, Working Papers from The University of Sheffield, Department of Economics

Abstract: Using British panel data, we explore the relationship between saving behaviour and health,as measured by an extensive range of biomarkers, which are rarely available in large nationallyrepresentative surveys. The effects of these objective measures of health are compared withcommonly used self-assessed health measures. We develop a semi-continuous high-dimensionalBayesian modelling approach, which allows different data-generating processes for the decision tosave and the amount saved. We find that composite biomarker measures of health, as well asindividual biomarkers, are significant determinants of saving. Our results suggest that objectivebiomarker measures of health have differential impacts on saving behaviour compared to selfreported health measures, suggesting that objective health measures can further our understanding ofthe effect of health on financial behaviours.

Keywords: bayesian modelling; biomarkers; household finances; saving; two-part model. (search for similar items in EconPapers)
JEL-codes: D12 D14 (search for similar items in EconPapers)
Pages: 47 pages
Date: 2017-02
New Economics Papers: this item is included in nep-ecm and nep-hea
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