This paper examines the effect of adult health on the savings and portfolio decisions of rural Pakistani households. It also tests whether such effects result because ill-health affects income and the rates of return on specific assets. By so doing, it provides evidence on the sensitivity of savings to income changes and to interest rates. I find that expectations of future ill-health increase overall savings, but reduce investments in productive assets thereby forging a link between health and poverty. I also find that the number of males in a household condition the impact of the ill-health of any given individual on savings outcomes.
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