| Sumario: | This study examines the impact of Thailand's Bt30 universal health care scheme on household saving behavior using Thai Household Socio-Economic Survey data from 2000, 2001, and 2004. Using two difference-in-differences approaches, I find that saving behavior changed after the scheme's introduction. First, the propensity to save decreases by approximately 14%–17%, which constitutes 24%–30% of the propensity to save out of permanent income in 2004. Second, the propensity to save out of permanent income decreases immediately after the scheme's introduction. Hence, even poor households significantly reduce their living standards to prepare for unpredictable health risks.
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