Article ID Journal Published Year Pages File Type
5100805 Journal of Health Economics 2016 46 Pages PDF
Abstract
We empirically assess whether a health shock influences individual risk aversion. We use grip strength data to obtain an objective health shock indicator. In order to account for the non-random nature of our data regression-adjusted matching is employed. Risk preferences are traditionally assumed to be constant. However, we find that a health shock increases individual risk aversion. The finding is robust to a series of sensitivity analyses and persists for at least four years after the shock. Income changes do not seem to be the driving mechanism.
Related Topics
Health Sciences Medicine and Dentistry Public Health and Health Policy
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