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Medical Insurance Effects on Household Durable Goods Consumption: Evidence from China

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  • Weixian Cai
  • Jian Chen
  • Hui Ding

Abstract

In this article, we employ the China Health and Nutrition Survey (CHNS) data to investigate the effect of medical insurance on household durable goods consumption, which is closely related to China’s future rapid economic growth. We apply a logit regression model and find that medical insurance significantly promotes household durable goods consumption. Moreover, urban and rural households have different consumption choices when they are covered by medical insurance. To be more specific, urban households with medical insurance augment their consumption of refrigerators, washing machines, and air conditioners; rural households with medical insurance increase their purchases of color TVs, refrigerators, washing machines, air conditioners, and computers.

Suggested Citation

  • Weixian Cai & Jian Chen & Hui Ding, 2016. "Medical Insurance Effects on Household Durable Goods Consumption: Evidence from China," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 52(2), pages 449-460, February.
    • Handle: RePEc:mes:emfitr:v:52:y:2016:i:2:p:449-460
    DOI: 10.1080/1540496X.2016.1110461
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    Cited by:

    1. Wenxia Zhao, 2020. "Effect of air pollution on household insurance purchases. Evidence from China household finance survey data," PLOS ONE, Public Library of Science, vol. 15(11), pages 1-11, November.

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