Cited by 261Healthcare Policy and ManagementFinancial Literacy, Pension, Retirement AnalysisSocial Policy and Reform Studies

Public Health Insurance and Private Savings

Gruber, Jonathan, Yelowitz, Aaron·1999·Journal of Political Economy

Abstract

We assess the effect of a means‐ and asset‐tested social insurance program, Medicaid, on the savings behavior of households. We do so using data on both asset holdings and consumption, matched to information on the eligibility of families for health insurance coverage under this program. Exogenous variation in Medicaid eligibility is provided by the dramatic expansion of this program over the 1984–93 period. We document that Medicaid eligibility has a sizable and significant negative effect on wealth holdings, and we confirm this finding by showing a strong positive association between Medicaid eligibility and consumption expenditures. We also exploit the fact that asset testing was phased out by the Medicaid program over this period to document that these Medicaid effects are much stronger in the presence of an asset test.

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Crossref · 10.1086/250096

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  • Government transfer programs including AFDC/TANF and Medicaid may affect household wealth by reducing saving incentives and encouraging dissaving due to asset tests, or both, but evidence for these effects is mixed.

    “Government transfer programs, including AFDC/TANF and Medicaid, may affect household wealth by reducing saving incentives and encouraging dissaving due to asset tests, or both, but evidence for these effects is mixed (Gruber & Yelowitz 1999, Hurst & Ziliak 2006, Sullivan 2006).”

    From Wealth Inequality and Accumulation (2017) · cites this paper as Gruber & Yelowitz 1999

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Authors
Gruber, J., & Yelowitz, A.
Affiliations
University of Kentucky (US)
Venue
Journal of Political Economy
Published
1999-12
Volume
107
Issue
6
Pages
1249-1274
ISSN
  • 0022-3808 (ISSN-L)
  • 1537-534X
OpenAlex
W2133046202
Cited by
261
References
0
Citations by year
2026: 10 · 2025: 15 · 2024: 11 · 2023: 15 · 2022: 12 · 2021: 8 · 2020: 6 · 2019: 11 · 2018: 12 · 2017: 15 · 2016: 16 · 2015: 13 · 2014: 16 · 2013: 14 · 2012: 9
FWCI
11.49
Type
journal article
Language
en
Open access
closed
Locations
  • Journal of Political Economy (publishedVersion)
  • UKnowledge (University of Kentucky) (submittedVersion)
Topics
  • Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Healthcare Policy and Management
  • Social Sciences › Business, Management and Accounting › Accounting › Financial Literacy, Pension, Retirement Analysis
  • Social Sciences › Political Science and International Relations › Social Policy and Reform Studies
Keywords
Medicaid, public health insurance, household savings, personal savings, means testing, Medicaid expansion, household wealth, consumer spending, Medicaid eligibility, social insurance

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