The effect of shocks in household debt on health
|Santen, P. van
|Munckhof, Jesper van den
|The association between shocks in mortgage debt and health is analyzed by using data from the DNB Household survey from 2003 to 2014. Two measures for individual indebtedness are applied: mortgage debt and the Loan-to-Value ratio. Results show that mortgage debt does not have a direct effect on health, but an indirect effect on health through the Loan-to-Value ratio. Problems of reverse causality are reduced by the Dutch medical insurance system and by using a subsample of constantly employed individuals. Fixed effects and instrumental variables are used to reduce the omitted variable bias and to create a case for causality.
|Faculteit der Managementwetenschappen
|Accounting & Control
|The effect of shocks in household debt on health