The Role of Housing and Financial Wealth on Healthcare Expenditure - PowerPoint PPT Presentation

Research Topic and Motivation Theoretical Framework Data and Methodology Econometric Methodology and Preliminiary Findings Future work The Role of Housing and Financial Wealth on Healthcare Expenditure Nayan Krishna Joshi Department of Economics Wayne State University Sep 19, 2013 Nayan Krishna Joshi The Role of Housing and Financial Wealth on Healthcare Expenditure

Research Topic and Motivation Theoretical Framework Data and Methodology Econometric Methodology and Preliminiary Findings Future work Outline Research Topic and Motivation 1 Theoretical Framework 2 Data and Methodology 3 Econometric Methodology and Preliminiary Findings 4 Future work 5 Nayan Krishna Joshi The Role of Housing and Financial Wealth on Healthcare Expenditure

Research Topic and Motivation Theoretical Framework Data and Methodology Econometric Methodology and Preliminiary Findings Future work Focus on the influence of housing and financial wealth on healthcare expenditure. Nayan Krishna Joshi The Role of Housing and Financial Wealth on Healthcare Expenditure

Research Topic and Motivation Theoretical Framework Data and Methodology Econometric Methodology and Preliminiary Findings Future work Focus on the influence of housing and financial wealth on healthcare expenditure. Only few studies have provided empirical evidence on the effect of wealth on healthcare spending. These include Okunade, Suraratdecha, and Benson (2010), Marshall, McGarry, and Skinner (2010), and Kim and Ruhm (2012). Nayan Krishna Joshi The Role of Housing and Financial Wealth on Healthcare Expenditure

Research Topic and Motivation Theoretical Framework Data and Methodology Econometric Methodology and Preliminiary Findings Future work Focus on the influence of housing and financial wealth on healthcare expenditure. Only few studies have provided empirical evidence on the effect of wealth on healthcare spending. These include Okunade, Suraratdecha, and Benson (2010), Marshall, McGarry, and Skinner (2010), and Kim and Ruhm (2012). Nayan Krishna Joshi The Role of Housing and Financial Wealth on Healthcare Expenditure

Research Topic and Motivation Theoretical Framework Data and Methodology Econometric Methodology and Preliminiary Findings Future work Motivation Okunade, Suraratdecha, and Benson (2010) : the first 1 study to analyse the effect of wealth (using proxies such as air conditioner, motorbike, car, television etc) on the household healthcare expenditure, but they focus on data of Thailand. Nayan Krishna Joshi The Role of Housing and Financial Wealth on Healthcare Expenditure

Research Topic and Motivation Theoretical Framework Data and Methodology Econometric Methodology and Preliminiary Findings Future work Motivation Okunade, Suraratdecha, and Benson (2010) : the first 1 study to analyse the effect of wealth (using proxies such as air conditioner, motorbike, car, television etc) on the household healthcare expenditure, but they focus on data of Thailand. Marshall, McGarry, and Skinner (2010) : use the Health 2 and Retirement Survey and find that the expenditures are strongly positively related to wealth but weakly related to income (near the end of life). Nayan Krishna Joshi The Role of Housing and Financial Wealth on Healthcare Expenditure

Research Topic and Motivation Theoretical Framework Data and Methodology Econometric Methodology and Preliminiary Findings Future work Motivation Okunade, Suraratdecha, and Benson (2010) : the first 1 study to analyse the effect of wealth (using proxies such as air conditioner, motorbike, car, television etc) on the household healthcare expenditure, but they focus on data of Thailand. Marshall, McGarry, and Skinner (2010) : use the Health 2 and Retirement Survey and find that the expenditures are strongly positively related to wealth but weakly related to income (near the end of life). Kim and Ruhm (2012) : use the Health and Retirement 3 Survey and inheritances as an instrument for positive wealth shock and find positive and small but insignificant effect of shocks on the probability of positive expenditures. Nayan Krishna Joshi The Role of Housing and Financial Wealth on Healthcare Expenditure

Research Topic and Motivation Theoretical Framework Data and Methodology Econometric Methodology and Preliminiary Findings Future work Motivation Okunade, Suraratdecha, and Benson (2010) : the first 1 study to analyse the effect of wealth (using proxies such as air conditioner, motorbike, car, television etc) on the household healthcare expenditure, but they focus on data of Thailand. Marshall, McGarry, and Skinner (2010) : use the Health 2 and Retirement Survey and find that the expenditures are strongly positively related to wealth but weakly related to income (near the end of life). Kim and Ruhm (2012) : use the Health and Retirement 3 Survey and inheritances as an instrument for positive wealth shock and find positive and small but insignificant effect of shocks on the probability of positive expenditures. Nayan Krishna Joshi The Role of Housing and Financial Wealth on Healthcare Expenditure

Research Topic and Motivation Theoretical Framework Data and Methodology Econometric Methodology and Preliminiary Findings Future work Research gap and Contribution Previous studies on U.S. focus only on elderly population. 1 Nayan Krishna Joshi The Role of Housing and Financial Wealth on Healthcare Expenditure

Research Topic and Motivation Theoretical Framework Data and Methodology Econometric Methodology and Preliminiary Findings Future work Research gap and Contribution Previous studies on U.S. focus only on elderly population. 1 Previous studies donot analyze the independent role of 2 financial and housing wealth, though the literature on wealth and consumption indicates that such effects could exist (e.g., Bostic, Gabriel, and Painter, 2009; Case, Quigley, and Shiller, 2012). Nayan Krishna Joshi The Role of Housing and Financial Wealth on Healthcare Expenditure

Research Topic and Motivation Theoretical Framework Data and Methodology Econometric Methodology and Preliminiary Findings Future work Research gap and Contribution Previous studies on U.S. focus only on elderly population. 1 Previous studies donot analyze the independent role of 2 financial and housing wealth, though the literature on wealth and consumption indicates that such effects could exist (e.g., Bostic, Gabriel, and Painter, 2009; Case, Quigley, and Shiller, 2012). Previous studies donot include the most recent data (2010). 3 Nayan Krishna Joshi The Role of Housing and Financial Wealth on Healthcare Expenditure

Research Topic and Motivation Theoretical Framework Data and Methodology Econometric Methodology and Preliminiary Findings Future work Outline Research Topic and Motivation 1 Theoretical Framework 2 Data and Methodology 3 Econometric Methodology and Preliminiary Findings 4 Future work 5 Nayan Krishna Joshi The Role of Housing and Financial Wealth on Healthcare Expenditure

Research Topic and Motivation Theoretical Framework Data and Methodology Econometric Methodology and Preliminiary Findings Future work Grossman human capital model (1972, 2000) Individuals derive utility from consumption and health: 1 U = U ( C , H ) Nayan Krishna Joshi The Role of Housing and Financial Wealth on Healthcare Expenditure

Research Topic and Motivation Theoretical Framework Data and Methodology Econometric Methodology and Preliminiary Findings Future work Grossman human capital model (1972, 2000) Individuals derive utility from consumption and health: 1 U = U ( C , H ) Health is produced by combining time inputs, t , with 2 healthcare expenditure, M : H = H ( t , M ) Nayan Krishna Joshi The Role of Housing and Financial Wealth on Healthcare Expenditure

Research Topic and Motivation Theoretical Framework Data and Methodology Econometric Methodology and Preliminiary Findings Future work Grossman human capital model (1972, 2000) Individuals derive utility from consumption and health: 1 U = U ( C , H ) Health is produced by combining time inputs, t , with 2 healthcare expenditure, M : H = H ( t , M ) An individual works T w hours and faces the time constraint T : 3 T = T w + tM and budget constraint: wT w + R + S = P m (1 − r ) + C where, R is housing wealth and S is financial wealth Nayan Krishna Joshi The Role of Housing and Financial Wealth on Healthcare Expenditure

Research Topic and Motivation Theoretical Framework Data and Methodology Econometric Methodology and Preliminiary Findings Future work Grossman human capital model (1972, 2000) Individuals derive utility from consumption and health: 1 U = U ( C , H ) Health is produced by combining time inputs, t , with 2 healthcare expenditure, M : H = H ( t , M ) An individual works T w hours and faces the time constraint T : 3 T = T w + tM and budget constraint: wT w + R + S = P m (1 − r ) + C where, R is housing wealth and S is financial wealth M = M ( w , T , t , R , S , P m , r ) 4 Nayan Krishna Joshi The Role of Housing and Financial Wealth on Healthcare Expenditure