Do Different Shocks in Health Matter for Wealth?
91 Pages Posted: 9 Dec 2021
We study the effect of hospital admissions for specific conditions on wealth for the older Dutch population. We consider 14 disease groups that affect mortality and disability to different extents. We apply a “difference-in-timing” design comparing individuals admitted in one year to similar individuals admitted later. We find that protection against income risks and medical spending is high. Consequently, we can identify changes in saving behaviors driven by preferences for consumption, saving, and bequests, rather than by changes in budget constraints. Although the health shocks differ in mortality and disability, we find hardly any impact on wealth across conditions.
Funding Information: MISSING
Declaration of Interests: None.
Ethics Approval Statement: MISSING
Keywords: pension wealth, consumption smoothing, health shocks, savings at old age
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