An Invisible Oncologist: Health Implications of Financing Frictions

52 Pages Posted: 6 Apr 2021 Last revised: 15 Nov 2021

See all articles by Alexandr Kopytov

Alexandr Kopytov

The University of Hong Kong - Faculty of Business and Economics

Tong Liu

University of Pennsylvania - Finance Department

Haotian Xiang

Peking University - Department of Finance

Date Written: March 16, 2021

Abstract

Approximately 38.4% of men and women will be diagnosed with cancer at some point during their lifetime. This paper investigates the impacts of financing frictions on the longevity of cancer patients. We first document that an increase in house price causes a large improvement in patients' survivals, and the sensitivity is closely related to frictions of accessing local credit markets. We then propose a life-cycle model of portfolio choice where agents face a cancer risk but treatment can be limited by borrowing constraints. Counterfactual analyses suggest that a 5% increase in borrowing limit extends the longevity of more than 300,000 patients by on average a half-year.

Keywords: Financing frictions, longevity, housing price, cancer

JEL Classification: D14, G51, I15, I31

Suggested Citation

Kopytov, Alexandr and Liu, Tong and Xiang, Haotian, An Invisible Oncologist: Health Implications of Financing Frictions (March 16, 2021). Jacobs Levy Equity Management Center for Quantitative Financial Research Paper , Available at SSRN: https://ssrn.com/abstract=3806452 or http://dx.doi.org/10.2139/ssrn.3806452

Alexandr Kopytov

The University of Hong Kong - Faculty of Business and Economics ( email )

Pokfulam Road
Hong Kong
China

Tong Liu (Contact Author)

University of Pennsylvania - Finance Department ( email )

The Wharton School
3620 Locust Walk
Philadelphia, PA 19104
United States

HOME PAGE: http://sites.google.com/view/tongl

Haotian Xiang

Peking University - Department of Finance ( email )

Beijing
China

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