Different studies point out the different direction of the causality between financial strain and health. However, few of them dealt with the endogeneity properly.By applying a two-stage probit model, the endogeneity between health and financial strain can be controlled to some extent, which results in a valid result to show the causality between the two factors and the impact of other control variables. By establishing variables based on the household rather than the individual, the regression results are more likely to show the relationship between household financial factors and health, thus making it more useful to capture the effects of both on each other. In addition to the analysis of causality, this paper also investigate the relationship between the factors like education, income and household type with health and finance. And the robustness test shows that there is a closer relationship between health and fiancial strain in the couple household.

Accepted Oral Presentation