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Household Financial Vulnerability to Income and Medical Expenditure Shocks: Measurement and Determinants
This paper proposes a novel ex ante indicator to measure the degree of household financial vulnerability by calculating the probability of falling into financial distress under uncertain income and medical expenditure. The advantage of this measure is that it can reflect the capacity of households t...
Autores principales: | , |
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Formato: | Online Artículo Texto |
Lenguaje: | English |
Publicado: |
MDPI
2022
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Materias: | |
Acceso en línea: | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9030839/ https://www.ncbi.nlm.nih.gov/pubmed/35457346 http://dx.doi.org/10.3390/ijerph19084480 |
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author | He, Lei Zhou, Shuyi |
author_facet | He, Lei Zhou, Shuyi |
author_sort | He, Lei |
collection | PubMed |
description | This paper proposes a novel ex ante indicator to measure the degree of household financial vulnerability by calculating the probability of falling into financial distress under uncertain income and medical expenditure. The advantage of this measure is that it can reflect the capacity of households to deal with income shock and medical expenditure shock and quantify the degree of financial vulnerability for households beforehand. We employ it to measure the financial vulnerability of Chinese urban and rural households separately by using data from the China Health and Retirement Longitudinal Study (CHARLS) 2011, 2013, and 2015. Further, we analyze the potential determinants and their contributions to financial vulnerability changes. We find that rural households experience higher financial vulnerability than urban households. Furthermore, the investigation into the effects of potential determinants suggests that demographic variables (including age, gender, education, marital status, household size, labor force, and area), health-related variables (including health status, disability, and health shock), and medical insurance variables (including urban employee medical insurance and commercial medical insurance) have significant effects on the financial vulnerability of both urban and rural households. Contribution analysis of the determinants of household financial vulnerability shows that variables including disability, health shock, household size, labor force, and education contribute most to the changes in financial vulnerability. |
format | Online Article Text |
id | pubmed-9030839 |
institution | National Center for Biotechnology Information |
language | English |
publishDate | 2022 |
publisher | MDPI |
record_format | MEDLINE/PubMed |
spelling | pubmed-90308392022-04-23 Household Financial Vulnerability to Income and Medical Expenditure Shocks: Measurement and Determinants He, Lei Zhou, Shuyi Int J Environ Res Public Health Article This paper proposes a novel ex ante indicator to measure the degree of household financial vulnerability by calculating the probability of falling into financial distress under uncertain income and medical expenditure. The advantage of this measure is that it can reflect the capacity of households to deal with income shock and medical expenditure shock and quantify the degree of financial vulnerability for households beforehand. We employ it to measure the financial vulnerability of Chinese urban and rural households separately by using data from the China Health and Retirement Longitudinal Study (CHARLS) 2011, 2013, and 2015. Further, we analyze the potential determinants and their contributions to financial vulnerability changes. We find that rural households experience higher financial vulnerability than urban households. Furthermore, the investigation into the effects of potential determinants suggests that demographic variables (including age, gender, education, marital status, household size, labor force, and area), health-related variables (including health status, disability, and health shock), and medical insurance variables (including urban employee medical insurance and commercial medical insurance) have significant effects on the financial vulnerability of both urban and rural households. Contribution analysis of the determinants of household financial vulnerability shows that variables including disability, health shock, household size, labor force, and education contribute most to the changes in financial vulnerability. MDPI 2022-04-08 /pmc/articles/PMC9030839/ /pubmed/35457346 http://dx.doi.org/10.3390/ijerph19084480 Text en © 2022 by the authors. https://creativecommons.org/licenses/by/4.0/Licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (https://creativecommons.org/licenses/by/4.0/). |
spellingShingle | Article He, Lei Zhou, Shuyi Household Financial Vulnerability to Income and Medical Expenditure Shocks: Measurement and Determinants |
title | Household Financial Vulnerability to Income and Medical Expenditure Shocks: Measurement and Determinants |
title_full | Household Financial Vulnerability to Income and Medical Expenditure Shocks: Measurement and Determinants |
title_fullStr | Household Financial Vulnerability to Income and Medical Expenditure Shocks: Measurement and Determinants |
title_full_unstemmed | Household Financial Vulnerability to Income and Medical Expenditure Shocks: Measurement and Determinants |
title_short | Household Financial Vulnerability to Income and Medical Expenditure Shocks: Measurement and Determinants |
title_sort | household financial vulnerability to income and medical expenditure shocks: measurement and determinants |
topic | Article |
url | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9030839/ https://www.ncbi.nlm.nih.gov/pubmed/35457346 http://dx.doi.org/10.3390/ijerph19084480 |
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