We investigate the relationship between foreclosures and hospital visits using data on all foreclosures and all hospital and emergency room visits from four states that were among the hardest hit by the foreclosure crisis. We find that living in a neighborhood with a spike in foreclosures is associated with significant increases in urgent unscheduled visits, including increases in visits for preventable conditions. The estimated relationships cannot be accounted for by increasing unemployment, declines in housing prices, migration, or by people switching from out-patient providers to hospitals.Foreclosure rates reached historically high levels in the United States during the recent economic crisis. According to Realtytrac, a leading firm that monitors and markets foreclosed homes, a record 2.82 million homes faced foreclosure in 2009, a 21 percent rise from 2008 and a huge 120 percent jump from 2007. 1 One in 45 homes (2.23 percent of all housing units in the U.S.) received at least one foreclosure filing during 2010. As policymakers have debated measures to stabilize the housing market and minimize the damage to the U.S. economy, researchers have turned their attention to understanding the consequences of rising foreclosures.While a number of studies have investigated the effect of the foreclosure crisis on outcomes such as home prices and sales, residential investment, and durable consumption (e.g., Immergluck and Smith, 2006; Calomiris, Longhofer, and Miles, 2008;Rogers and Winter, 2009;Harding, Rosenblatt, and Yao, 2009;Mian, Sufi, and Trebbi, 2010), there has been no large-scale investigation of the effect of the crisis on health. The foreclosure crisis represents a significant shock to the financial well-being of many households, and thus provides a fresh opportunity to examine the relationship between financial distress and health. Financial distress may have direct effects on health, but can also cause changes in health behaviors, which in turn can have negative health consequences.The goal of this paper is to investigate whether the foreclosure crisis had an adverse effect on health. To accomplish this goal, we assemble quarterly data on all foreclosures, allCorrespondence to: Erdal Tekin, tekin@gsu.edu. 1 See http://www.realtytrac.com/content/foreclosure-market-report.
HHS Public AccessAuthor manuscript Am Econ J Econ Policy. Author manuscript; available in PMC 2016 July 05.
Author Manuscript Author Manuscript Author Manuscript Author ManuscriptEmergency Room (ER) visits, and all hospitalizations from four states (Arizona, California, Florida, and New Jersey) which are among the 10 states that have been hardest hit by the crisis. Unfortunately, there are no large individual-level longitudinal sources of data linking foreclosure and health. In the absence of such data, we match data on foreclosures, hospitalizations, and ER visits at the zip code level.Our main specifications control for zip code fixed effects, zip code specific linear time trends, and county by quarter by year fixed effects so...