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Frontiers of Economics in China

ISSN 1673-3444

ISSN 1673-3568(Online)

CN 11-5744/F

Postal Subscription Code 80-978

Front. Econ. China    2016, Vol. 11 Issue (2) : 232-264    https://doi.org/10.3868/s060-005-016-0015-0
Orginal Article |
Precautionary Saving and Health Insurance: A Portfolio Choice Perspective
Jiaping Qiu()
DeGroote School of Business, McMaster University, Hamilton, Ontario L8S 4M4, Canada
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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     
Issue Date: 08 June 2016
 Cite this article:   
Jiaping Qiu. Precautionary Saving and Health Insurance: A Portfolio Choice Perspective[J]. Front. Econ. China, 2016, 11(2): 232-264.
 URL:  
http://academic.hep.com.cn/fec/EN/10.3868/s060-005-016-0015-0
http://academic.hep.com.cn/fec/EN/Y2016/V11/I2/232
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[2] Guan Gong,Hongmei Wang,Lingli Xu. The Risks and Dynamics of Health Care Expenditures in Urban China: An Illustration in Kunshan City[J]. Front. Econ. China, 2014, 9(4): 634-660.
[3] DING Jihong, ZHU Minglai. A theoretical investigation of the reformed public health insurance in urban China[J]. Front Econ Chin, 2009, 4(1): 1-29.
[4] DING Jihong, ZHU Minglai. Welfare effects of public health insurance reform: The case of urban China[J]. Front. Econ. China, 2007, 2(3): 289-323.
[5] LUO Chuliang. Precautionary motivation and consumption insurance: Empirical analysis of household consumption behavior in rural China[J]. Front. Econ. China, 2007, 2(1): 137-150.
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