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Health care quality, economic inequality, and precautionary saving

✍ Scribed by Tullio Jappelli; Luigi Pistaferri; Guglielmo Weber

Publisher
John Wiley and Sons
Year
2007
Tongue
English
Weight
333 KB
Volume
16
Category
Article
ISSN
1057-9230

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✦ Synopsis

Abstract

We argue that health care quality has an important impact on economic inequality and on saving behavior. We exploit district‐wide variability in health care quality provided by the Italian universal public health system to identify the effect of quality on income inequality, health inequality and precautionary saving. We find that in lower quality districts there is greater income and health dispersion and higher precautionary saving. The analysis carries important insights for the ongoing debate about the validity of the life‐cycle model and interesting policy implications for the design of health care systems. Copyright © 2006 John Wiley & Sons, Ltd.

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