Borrowing to cope with adverse health events: liquidity constraints, insurance coverage, and unsecured debt

TitleBorrowing to cope with adverse health events: liquidity constraints, insurance coverage, and unsecured debt
Publication TypeJournal Article
Year of Publication2013
AuthorsBabiarz, PD, Widdows, R, Yilmazer, T
JournalHealth Economics
Volume22
Issue10
Pagination1177-98
KeywordsMedicare/Medicaid/Health Insurance, Net Worth and Assets, Public Policy
Abstract

This article uses data from the Health and Retirement Study for 1998-2010 to investigate whether households respond to the financial stress caused by health problems by increasing their unsecured debt. Results show both the probability of having unsecured debt and the amount of debt increase after an adverse health event among households with low financial assets, who are uninsured, or who have less generous health insurance. The effect of health problems on borrowing is caused by both medical expenditures and disruptions to the income stream. Unsecured debt seems to remain on some households' balance sheets for an extended period.

Notes

Times Cited: 0

DOI10.1002/hec.2877
Endnote Keywords

financial security/health Insurance/Financial risk taking/unsecured debt

Endnote ID

69120

Citation Key7850