Do health shocks have an effect on individual portfolio choice after controlling for risk behavior?

Abstract This paper replicates an earlier study to confirm whether or not health status plays a causal role in portfolio decision using data from the DNB Household Survey. Most previous studies found positive and significant relationships between health and portfolio choice. This paper belongs to the minority which is not able to establish such a causal link, despite running multiple models over a 15year time range and the inclusion of psychological factors such as risk and time preferences. Nonetheless during the research doubt was raised with respect to the methodologies used in the past literature, maybe explaining their significant outcomes.