Journal article
Medicare Part D and Portfolio Choice
The American economic review, Vol.106(5), pp.339-342
05/01/2016
DOI: 10.1257/aer.p20161125
PMID: 29547247
Abstract
Economic theory suggests that medical spending risk affects the extent to which households are willing to accept financial risk, and consequently their investment portfolios. In this study, we focus on the elderly for whom medical spending represents a substantial risk. We exploit the exogenous reduction in prescription drug spending risk due to the introduction of Medicare Part D in the U.S. in 2006 to identify the causal effect of medical spending risk on portfolio choice. Consistent with theory, we find that Medicare-eligible persons increased risky investment after the introduction of prescription drug coverage, relative to a younger, ineligible cohort.
Details
- Title: Subtitle
- Medicare Part D and Portfolio Choice
- Creators
- Padmaja Ayyagari - University of IowaDaifeng He - William & Mary
- Resource Type
- Journal article
- Publication Details
- The American economic review, Vol.106(5), pp.339-342
- DOI
- 10.1257/aer.p20161125
- PMID
- 29547247
- NLM abbreviation
- Am Econ Rev
- ISSN
- 0002-8282
- eISSN
- 1944-7981
- Publisher
- Amer Economic Assoc
- Number of pages
- 4
- Language
- English
- Date published
- 05/01/2016
- Academic Unit
- Health Management and Policy
- Record Identifier
- 9984363571802771
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