The impact of adverse health events on consumption: Understanding the mediating effect of income transfers, wealth, and health insurance

Using data from the Panel Study of Income Dynamics for years 1999-2013, we investigate the impact of physical and mental illnesses on household consumption and financial status. In comparison to severe physical health problems, mental illnesses lead to larger decreases in labor income. Increases in public and private transfers following the onset of a mental illness do not completely offset the decline in labor income. Consequently, we find a significant decrease in consumption expenditures after the household head experiences a mental problem. On the other hand, public and private transfers and accumulated wealth offset the relatively smaller decline in labor income and enable households with severe physical problems to smooth their consumption. Health insurance helps to prevent larger drops in consumption after the onset of a mental health problem.

The impact of diminished housing wealth on health in the United States: evidence from the Great Recession

The sharp decline in home values in many industrialized and developing countries was one of the most evident facets of the global economic recession of 2008. Using data from the Panel Study of Income Dynamics (PSID) for 2007-2011, this study examines how the decline in housing wealth affected the psychological and physical health and health-related behaviors of 4007 U.S. households who were homeowners in 2007. We focus on two mechanisms that could account for how the drop in housing wealth affects health: increase in stress and negative changes in health-related behaviors. Controlling for the changes in non-housing wealth and employment status during the recession, the decline in housing wealth is associated with a small but statistically significant increase in psychological distress. Psychological health deteriorates more as the housing wealth relative to total wealth decreases. Finally, homeowners who have difficulties with mortgage payments report substantial increases in psychological distress and have higher rates of depression. These findings, combined with limited evidence of the change in health-related behaviors, suggest that the increase in stress is the main cause of the adverse health outcomes.

Borrowing to cope with adverse health events: liquidity constraints, insurance coverage, and unsecured debt

This article uses data from the Health and Retirement Study for 1998-2010 to investigate whether households respond to the financial stress caused by health problems by increasing their unsecured debt. Results show both the probability of having unsecured debt and the amount of debt increase after an adverse health event among households with low financial assets, who are uninsured, or who have less generous health insurance. The effect of health problems on borrowing is caused by both medical expenditures and disruptions to the income stream. Unsecured debt seems to remain on some households' balance sheets for an extended period.

Membrane fusion: studies with a calcium-sensitive dye, arsenazo III, in liposomes

Fusion between vesicles, cells, or organelles may be defined as confluence of two membrane-bound compartments without access of their solutes to external milieu. To study fusion by this criterion, we have trapped the metallochromic calcium-sensitive dye, arsenazo III (AIII), partially calcium-saturated (AIII-Ca) in one population of liposomes (phoshatidylcholine 90:dicetylphosphate 10), and ethylene glycol-bis(beta-aminoethyl ether)-N,N'-tetraacetate (EGTA) in a second. In such mixtures, interaction of EGTA with AIII-Ca was measured by a large color shift from blue leads to red (decreased absorbance at 660 nm). Fusion of liposomes (but also lysis and diffusion across the membranes) was proportional to these decrements. The exogenous "fusogens," lysolecithin and retinol, were added to liposomes for 5-24 hr at 37 degrees; after rechromatography, measurements were made of total dye, fraction of dye converted from AIII-Ca to AIII, and total lipid. After correction for lysis and diffusion, lysolecithin (200 microng/ml) induced 23% fusion (volume of AIII liposomes confluent with EGTA liposomes) and retinol (300 microng/ml) induced 15%. With one molar percent cortisol (a membrane stabilizer) in the liposome membranes, fusion induced by fusogens was reduced 2-fold. Neither multi-nor unilamellar liposomes fused with each other in the absence of exogenous fusogens, despite wide variations in molar lipid ratios. Results suggest that liposome-liposome fusion is a slow process requiring exogenous fusogens, which may depend upon contributions of other membrane constituents to mimic closely the fusion of natural membranes.