The Research Seminar in Economics is a platform for invited speakers to present their current research, thereby facilitating the exchange between speakers and faculty members of the City University of London.
It covers empirical as well as theoretical contributions across all fields of economics. The Research Seminar in Economics is usually held weekly during the academic term.
What role does bank presence play in improving health?
To explore this question, I use a policy of the Reserve Bank of India from 2005 that incentivizes banks to set up new branches in underbanked districts, defined as having a population-to-branch ratio larger than the national average.
In a regression discontinuity design, I compare households in districts just above and just below the national average. Six years after the policy introduction, households in treatment districts are a third less likely to be affected by an illness in a month.
They miss fewer days of work or school due to an illness and have lower medical expenses. Ten years after the policy was introduced, I observe persistently lower morbidity rates, higher vaccination rates, and lower risks associated with pregnancies.
I provide evidence that two previously understudied aspects of banking contribute to the effect: households gain access to health insurance and health care providers gain access to credit. In equilibrium, I observe an increase in health care demand and supply.
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Kim Fe Cramer (LSE Finance)
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