Department of Humanities and Social Sciences , New Jersey Institute of Technology , Newark NJ and National Bureau of Economic Research , New York NY , USA; Department of Economics , National Taiwan University; Department of Health Policy and Management and Center for Risk Analysis , Harvard School of Public Health.Chou, Shin-YiShin-YiChouLiu, Jin-TanJin-TanLiuHammitt, J.K.J.K.Hammitt2006-11-152018-06-282006-11-152018-06-282003http://ntur.lib.ntu.edu.tw//handle/246246/2006111501254612By reducing uncertainty about future medical expenses, comprehensive health insurance can reduce households’ precautionary saving. We examine this effect using Taiwan micro-data spanning the 1995 introduction of National Health Insurance. The effects of National Health Insurance are identified using employment-based variation in prior insurance coverage. Replacement of the households’ prior insurance coverage with National Health Insurance is exogenous to the household, so our estimates are not subject to selection bias. Compared with the preceding government insurance programs, National Health Insurance reduced saving by an average of 8.6–13.7% with the largest effects for households with the smallest saving.application/pdf110057 bytesapplication/pdfzh-TWNational Health InsurancePrecautionary savingPrudencejournal articlehttp://ntur.lib.ntu.edu.tw/bitstream/246246/2006111501254612/1/6374.pdf