Bank Presence and Health

85 Pages Posted: 7 Sep 2021 Last revised: 10 Nov 2021

See all articles by Kim Fe Cramer

Kim Fe Cramer

Columbia University - Columbia Business School

Date Written: September 8, 2021

Abstract

What role does bank presence play in improving health? To explore this question, I use a policy of the Reserve Bank of India from 2005 that incentivizes banks to set up new branches in underbanked districts, defined as having a population-to-branch ratio larger than the national average. In a regression discontinuity design, I compare households in districts just above and just below the national average. Six years after the policy introduction, households in treatment districts are a third less likely to be affected by an illness in a month. They miss fewer days of work or school due to an illness and have lower medical expenses. Ten years after the policy was introduced, I observe persistently lower morbidity rates, higher vaccination rates, and lower risks associated with pregnancies. I provide evidence that two previously understudied aspects of banking contribute to the effect: households gain access to health insurance and health care providers gain access to credit. In equilibrium, I observe an increase in health care demand and supply.

Keywords: Financial Development, Banks, Health, Insurance, Credit

JEL Classification: G21, O12, O16, I15

Suggested Citation

Cramer, Kim Fe, Bank Presence and Health (September 8, 2021). Available at SSRN: https://ssrn.com/abstract=3917526 or http://dx.doi.org/10.2139/ssrn.3917526

Kim Fe Cramer (Contact Author)

Columbia University - Columbia Business School ( email )

3022 Broadway
New York, NY 10027
United States

HOME PAGE: http://www.kimfecramer.com

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
52
Abstract Views
259
rank
482,120
PlumX Metrics