You are here: Home / Publications / Heterogeneity of the Effects of Health Insurance on Household Savings: Evidence from Rural China

Heterogeneity of the Effects of Health Insurance on Household Savings: Evidence from Rural China

Cheung, Diana; & Padieu, Ysaline. (2013). Heterogeneity of the Effects of Health Insurance on Household Savings: Evidence from Rural China. CES Working Papers. Centre d'économie de la Sorbonne.

Cheung, Diana; & Padieu, Ysaline. (2013). Heterogeneity of the Effects of Health Insurance on Household Savings: Evidence from Rural China. CES Working Papers. Centre d'économie de la Sorbonne.

Octet Stream icon 2171.ris — Octet Stream, 971 bytes

This paper estimates the impact of the New Cooperative Medical Scheme (NCMS) on household saving across income quartiles in rural China. We use data from the China Health and Nutrition Survey for the 2006 wave and we run an ordinary least squares regression. We control for the endogeneity of NCMS participation by using an instrumental variable strategy. We find evidence that NCMS has a negative impact on savings of lower-middle-income participants, while it does not affect the poorest households. The negative effect of NCMS on savings of middle-income participants holds when we use propensity score matching estimations as a robustness check.




RPRT

CES Working Papers


Cheung, Diana
Padieu, Ysaline



2013









Centre d'économie de la Sorbonne






2171