Research On The Impact Of Health Shock On Household Borrowing

The high medical costs and the growth of medical expenses caused by the increase of health risks will make families fall into the difficult situation of paying medical expenses.At this time,families often respond to temporary large expenditures in the short term through borrowing.Commercial medical insurance can compensate for the economic losses suffered by insured families for medical treatment to a certain extent,thus alleviating the family ’ s financial crisis.Therefore,in order to avoid the plight of families falling into poverty due to illness and debt,it is necessary to study the relationship between health shocks and household borrowing behavior,and to explore whether commercial medical insurance plays an inhibitory role,so as to provide inspiration and feasible suggestions for families to resist health and financial risks.Firstly,this paper summarizes the domestic and foreign literature on health shocks,commercial health insurance and household borrowing behavior.Secondly,it defines the concept of health impact,commercial medical insurance and household loan and makes relevant theoretical analysis;then,the health status of Chinese residents,commercial health insurance and household debt status analysis;afterwards,the data source,variable selection and model setting are introduced,and the panel data of CHFS 2015,2017 and 2019 are used for empirical research.Benchmark regression analysis is carried out by constructing Probit and Tobit models,and commercial medical insurance is introduced on this basis to analyze the adjustment mechanism.At the same time,this paper uses the PSM-DID method for endogenous processing,conducts robustness tests by replacing the index selection criteria of the core explanatory variable of health shocks,and conducts heterogeneity analysis from the perspectives of urban and rural areas and regions;finally,the research conclusions of this paper are summarized,and relevant suggestions are put forward.The results show that :(1)Health shocks will significantly positively affect the family’s medical borrowing behavior,increase the family ’s demand for medical borrowing and the possibility of participation in medical borrowing,and also increase the amount of family medical borrowing demand and the actual medical debt scale;(2)When families suffer special health risk events,commercial medical insurance has a significant inhibitory effect on family medical borrowing behavior,which can significantly reduce the family ’s demand for medical borrowing and reduce the probability of families actually participating in medical borrowing.At the same time,in terms of scale,it can also significantly reduce the demand for family medical borrowing and the participation of medical liabilities;(3)The impact of commercial medical insurance on medical lending behavior is heterogeneous.Compared with urban households and households in the eastern region,the commercial medical insurance has a more obvious inhibitory effect on the medical borrowing demand and the probability of medical borrowing participation of rural and central and western health-shocked households,and it can also significantly reduce the amount of medical borrowing demand of households in the central region.Finally,this paper puts forward the following suggestions:(1)We should pay attention to health problems and improve the awareness of health risks in society;(2)Increase the publicity of commercial medical insurance and improve the participation rate of family commercial medical insurance;(3)Increase public health investment,and improve the multilevel social security system.