How household debt impacts residents’ health: evidence from China

This paper explores the relationship between household debt and residents' health. Using the China Family Panel Studies (CFPS) database, we find that household debt has a negative effect, which shows asymmetry and persistence on residents' health. Further heterogeneity analysis reveals that an increase in the debt level of non-over-indebted households has a more significant negative impact on residents' health, and, therefore, households need to consider the possible impact on health welfare of increases in their debt level.