The impact of health insurance on stockholding: A regression discontinuity approach

Dimitris Christelis, Dimitris Georgarakos and Anna Sanz-de-Galdeano

No 488, CFS Working Paper Series from Center for Financial Studies (CFS)

Abstract: Using data from the US Health and Retirement Study, we study the causal effect of increased health insurance coverage through Medicare and the associated reduction in health-related background risk on financial risk-taking. Given the onset of Medicare at age 65, we identify our effect of interest using a regression discontinuity approach. We find that getting Medicare coverage induces stockholding for those with at least some college education, but not for their less-educated counterparts. Hence, our results indicate that a reduction in background risk induces financial risk-taking in individuals for whom informational and pecuniary stock market participation costs are relatively low.

Keywords: Health Insurance; Medicare; Stockholding; Regression Discontinuity; Household Finance (search for similar items in EconPapers)
JEL-codes: D14 G11 I13 (search for similar items in EconPapers)
Date: 2014
New Economics Papers: this item is included in nep-ias
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Related works:
Journal Article: The impact of health insurance on stockholding: A regression discontinuity approach (2020)
Working Paper: The Impact of Health Insurance on Stockholding: A Regression Discontinuity Approach (2014)
Working Paper: The Impact of Health Insurance on Stockholding: A Regression Discontinuity Approach (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:cfswop:488

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