Do Different Shocks in Health Matter for Wealth?

91 Pages Posted: 9 Dec 2021

See all articles by Johan Bonekamp

Johan Bonekamp

AFM (Dutch Authority for the Financial Markets)

Bram Wouterse

Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE)

Abstract

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.

Note:
Funding Information: MISSING

Declaration of Interests: None.

Ethics Approval Statement: MISSING

Keywords: pension wealth, consumption smoothing, health shocks, savings at old age

Suggested Citation

Bonekamp, Johannes and Wouterse, Bram, Do Different Shocks in Health Matter for Wealth?. Available at SSRN: https://ssrn.com/abstract=3967217 or http://dx.doi.org/10.2139/ssrn.3967217

Johannes Bonekamp

AFM (Dutch Authority for the Financial Markets)

Vijzelgracht
50
Amsterdam, Noord-Holland 1017 HS
Netherlands

Bram Wouterse (Contact Author)

Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE) ( email )

P.O. Box 1738
3000 DR Rotterdam, NL 3062 PA
Netherlands

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

Paper statistics

Downloads
34
Abstract Views
178
PlumX Metrics