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Health insurance, agricultural production and investments

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  • Liu, Kai
  • Prommawin, Benjapon
  • Schroyen, Fred

Abstract

We study the effects of health insurance coverage on agricultural production decisions, examining the causal relationships by exploiting a health care reform and providing a theoretical framework to elucidate underlying mechanisms. We find that the reform led to long-run increases in total cultivation investments and output, accompanied by a shift in households’ cultivation portfolio towards riskier crops. We explain these findings using a model of agricultural investment, highlighting the important roles of health insurance in mitigating background medical expenditure risks and enhancing health. We also find that the reform improved households’ financial well-being through reduced debts and defaults on loans.

Suggested Citation

  • Liu, Kai & Prommawin, Benjapon & Schroyen, Fred, 2024. "Health insurance, agricultural production and investments," Journal of Health Economics, Elsevier, vol. 97(C).
    • Handle: RePEc:eee:jhecon:v:97:y:2024:i:c:s0167629624000638
    DOI: 10.1016/j.jhealeco.2024.102918
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    More about this item

    Keywords

    Health insurance; Risk-taking; Cultivation; Investments;
    All these keywords.

    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • G5 - Financial Economics - - Household Finance
    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

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