The Causal Effect of Health on Out-of-Pocket Health Expenditures: Evidence for Middle-aged and Older Adults in China.

With population aging, the presence of disability and chronic conditions has become a growing challenge among middle-aged and older adults in China. Using panel data of China Health and Retirement Longitudinal Study (CHARLS) from 2011 to 2018, this paper will explore the causal effects of Activities of Daily Living (ADL) limitations, Instrumental Activities of Daily Living (IADL) limitations, chronic conditions on Out-of-Pocket Expenditures (OOPEs) among middleaged and older adults in China. First difference model and difference-generalized method of moment (GMM) model are used to explore the causal relationships. This research for the first time examines the dynamic and causal relationship between health and OOPEs. [ABSTRACT FROM AUTHOR]