Bank presence and health

Cramer, Kim Fe (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:	16 Sep 2023 00:03
URI:	http://eprints.lse.ac.uk/id/eprint/119194

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