Cash Holdings and Health Shocks


We are the first to investigate how health shocks relate to cash holdings. Using three waves of the China Health and Retirement Longitudinal Study over the period 2013–2018, we document that, for middle‐aged and elderly people living in rural China, the onset of an acute health condition is associated with a 3.0 percentage point higher probability of holding only cash as a safe asset, and a 2.3 percentage point higher proportion of safe assets held in the form of cash. These results are robust to using different samples and estimation methods. We also find that ex‐post reimbursement of medical expenses and lack of bank accessibility may drive the association between health shocks and cash holdings.

Publication DOI:
Divisions: College of Business and Social Sciences > Aston Business School > Centre for Personal Financial Wellbeing
College of Business and Social Sciences > Aston Business School > Accounting
Additional Information: Copyright © 2024 The Authors. Review of Income and Wealth published by John Wiley & Sons Ltd on behalf of International Association for Research in Income and Wealth. This is an open access article under the terms of the Creative Commons Attribution License, which permits use, distribution and reproduction in any medium, provided the original work is properly cited.
Uncontrolled Keywords: banks,cash holdings,china,health insurance,health shocks
Publication ISSN: 1475-4991
Last Modified: 17 Jun 2024 08:23
Date Deposited: 16 Apr 2024 10:11
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Related URLs: https://onlinel ... 1111/roiw.12689 (Publisher URL)
http://www.scop ... tnerID=8YFLogxK (Scopus URL)
PURE Output Type: Article
Published Date: 2024-05-07
Published Online Date: 2024-05-07
Accepted Date: 2024-03-02
Authors: Tian, Lin (ORCID Profile 0000-0001-9490-6054)
Guariglia, Alessandra
Horsewood, Nicholas



Version: Accepted Version

Access Restriction: Restricted to Repository staff only

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Version: Published Version

License: Creative Commons Attribution

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