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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...

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Detalles Bibliográficos
Autores principales: He, Lei, Zhou, Shuyi
Formato: Online Artículo Texto
Lenguaje:English
Publicado: MDPI 2022
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.
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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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