Bank presence and health

Cramer, Kim Fe ORCID: 0000-0002-7525-4887 (2023) Bank presence and health. Financial Markets Group Discussion Papers (872). Financial Markets Group, The London School of Economics and Political Science, London, UK.

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Abstract

This paper demonstrates that increasing bank presence in underserved areas can substantially improve households’ health. I apply a regression discontinuity design to a policy of the Reserve Bank of India. Six years after the policy introduction, treatment districts have 19% more branches than control districts. Households’ probability of suffering from a non-chronic disease in a given month is 36% lower. I show evidence that two understudied aspects of banking play a role: banks provide health insurance to households and credit to hospitals. In equilibrium, I observe an increase in health care demand and supply.

Item Type:	Monograph (Discussion Paper)
Official URL:	https://www.fmg.ac.uk/
Additional Information:	© 2023 The Author
Divisions:	Finance
Subjects:	H Social Sciences > HG Finance
JEL classification:	G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages O - Economic Development, Technological Change, and Growth > O1 - Economic Development > O16 - Economic Development: Financial Markets; Saving and Capital Investment; Corporate Finance and Governance I - Health, Education, and Welfare > I1 - Health > I10 - General
Date Deposited:	12 May 2023 14:57
Last Modified:	21 Oct 2025 23:11
URI:	http://eprints.lse.ac.uk/id/eprint/119194

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