Sun Yat-Sen University Reports Findings in Healthcare Economics (Does supplemental private health insurance incentivize household risky financial asset investment? Evidence from the China Household Financial Survey): Economics – Healthcare Economics

2022 APR 12 (NewsRx) -- By a News Reporter-Staff News Editor at Insurance Daily News -- New research on Economics - Healthcare Economics is the subject of a report. According to news reporting from Guangdong, People’s Republic of China, by NewsRx journalists, research stated, “Private health insurance (PHI) is considered a supplement to public medical insurance schemes in China. To the extent that PHI coverage may offset background risk by decreasing medical expenditure risk, it may also incentivize risky financial behaviors.”

The news correspondents obtained a quote from the research from Sun Yat-Sen University, “However, empirical evidence confirming this theory is absent in China. We fill this void by examining the impact of supplemental PHI on household risky financial investment using data from the China Household Financial Survey (CHFS). In the first set of analyses, we used bivariate probit (BVP) models with instrumental variables (IVs) to examine the effects of PHI on the extensive margin of household risky financial investment. In the second set of analyses, we used Tobit models with a two-stage residual inclusion (2SRI) framework to examine the effects of PHI on the corresponding intensive margin. The results indicated that supplemental PHI increased the probability of holding risky financial assets. On top of that, PHI increased the percentage of total financial assets allocated to risky financial investment. Such effects were more pronounced on stocks than on other risky products.”

According to the news reporters, the research concluded: “Our findings provided evidence that purchasing supplemental PHI in China may increase the risk tolerance of financial investment, and risk attitude is a mediating factor between PHI ownership and risky financial investment behavior.”

This research has been peer-reviewed.

For more information on this research see: Does supplemental private health insurance incentivize household risky financial asset investment? Evidence from the China Household Financial Survey. International Journal of Health Economics and Management, 2022. International Journal of Health Economics and Management can be contacted at: Springer, One New York Plaza, Suite 4600, New York, Ny, United States.

Our news journalists report that additional information may be obtained by contacting Si Shi, School of Public Health (Shenzhen), Sun Yat-Sen University, 66 Gongchang Road, Guangming, Shenzhen, Guangdong, People’s Republic of China.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1007/s10754-022-09326-9. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.

Publisher contact information for the International Journal of Health Economics and Management is: Springer, One New York Plaza, Suite 4600, New York, Ny, United States.

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