Title | The Impact of Health Insurance on Stockholding: A Regression Discontinuity Approach |
Publication Type | Report |
Year of Publication | 2014 |
Authors | Christelis, D, Georgarakos, D, Sanz-de-Galdeano, A |
Institution | Bonn, Germany, Institute for the Study of Labor |
Keywords | Medicare/Medicaid/Health Insurance, Methodology, Net Worth and Assets, Risk Taking |
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. Tables, Figures, Appendixes, References. |
URL | http://ftp.iza.org/dp8635.pdf |
Endnote Keywords | Medicare/Health insurance/risk taking/stock market/assets/methodology |
Endnote ID | 999999 |
Citation Key | 5984 |