Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/103740
Authors: 
Christelis, Dimitris
Georgarakos, Dimitris
Sanz-de-Galdeano, Anna
Year of Publication: 
2014
Series/Report no.: 
CFS Working Paper Series 488
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.
Subjects: 
Health Insurance
Medicare
Stockholding
Regression Discontinuity
Household Finance
JEL: 
D14
I13
G11
Document Type: 
Working Paper

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