Dying and Dissaving – The heterogeneous response to changes in survival prospects (Job Market Paper)
Abstract: This paper investigates the impact of survival probability on saving behavior using population-wide data from Sweden. Exploiting exogenous variation in the timing of health events, I estimate the causal effect of survival probability on individual active saving decisions. The results show that a one-standard-deviation decline in survival probability reduces annual saving by 5 percent on average. The effect varies across the wealth distribution, with wealthier individuals dissaving more, while poorer individuals increase saving, suggesting that a reduced survival probability contributes to lower wealth inequality. Additionally, family composition influences saving responses, with singles dissaving regardless of having children, individuals in childless couples saving more, and those in couples with children maintaining their saving. These findings have important implications for understanding wealth inequality dynamics and designing social welfare programs.
The impact of PhD studies on mental health – A longitudinal population study (with Sanna Bergvall, Eva Ranehill, and Anna Sandberg)
Revise and Resubmit at the Journal of Health Economics
Selected media: Nature, Forbes, Thepaper.cn, Internazionale, El Espanol
Selected social media: X (2.6mn views, 2.4k reposts, 9.1k likes, 138 comments), Weixin, (63.1k reposts, 2.7k likes, 192 comments)
Available at: https://ssrn.com/abstract=4920527
Abstract: Recent self-reported and cross-sectional survey evidence documents high levels of mental health problems among PhD students. We study the impact of PhD studies on mental health care uptake using Swedish administrative records of prescriptions for psychiatric medication for the full population of PhD students. First, we provide descriptive evidence that PhD students collect psychiatric medication at a higher rate than a matched sample of individuals holding a master's degree, but at a lower rate than a matched sample from the general population. Second, we implement an event study analysis and document that, in the years preceding their PhD studies, prospective students collect psychiatric medication at a rate similar to that of a matched sample of individuals holding a master's degree. However, following the start of PhD studies, the use of psychiatric medication among PhD students increases substantially. This upward trend continues throughout the course of PhD studies, with estimates showing a 40 percent increase by the fifth year compared to pre-PhD levels. After the fifth year, which represents the average duration of PhD studies in our sample, we observe a notable decrease in the utilization of psychiatric medication.
Cost of Loans and Moral Hazard (with Yingjie Qi)
Available at: https://ssrn.com/abstract=3832609
Abstract: We document the effects of higher borrowing cost on private firms by exploiting a novel quasi-experiment and a unique and comprehensive dataset from Sweden. In June 2010, the central bank of Sweden increased the repo rate unexpectedly and exposed firms with long term loans maturing right before or after the hike to different cost of borrowing. Consistent with the debt overhang theory, we find that higher cost of borrowing has a significant negative effect on investment, and more for highly levered firms. Contrary to the risk shifting theory, we find no evidence that distressed firms engage in activities that are riskier ex-post.