The link between households’ durable asset accumulation and healthcare utilisation and spending

In developing countries with less advanced financial systems, the accumulation of durable assets remains key to enhancing household welfare. Despite this, studies that explore the link between asset accumulation and health outcomes have largely focused on financial assets. We contribute to the literature by examining the effect of durable asset accumulation on healthcare utilisation and spending using data from a comprehensive and nationally representative survey data in Ghana. Our preferred endogeneity-corrected estimates indicate that a standard deviation increase in asset accumulation is associated with 1.741 and 0.598 standard deviations improvement in healthcare utilisation and spending, respectively. These findings are robust to alternative approaches to addressing endogeneity and different ways of conceptualising asset accumulation. Heterogeneities in findings for gender, location, and for decomposed health expenditures are also explored. We identify education and entrepreneurship as important channels through which asset accumulation influences healthcare utilisation and spending, respectively, and recognise the need for flexible policies that enhance households’ accumulation of durable assets, especially in developing countries.