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The Distributional Impacts of Indonesia's Financial Crisis on Household Welfare: A "Rapid Response" Methodology Author info | Abstract | Publisher info | Download info | Related research | Statistics Jed Friedman
James Levinsohn
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Analyzing the distributional impacts of economic crises is an ever more pressing need. If policymakers are to intervene to help those most adversely affected, they need to identify those who have been hurt most and estimate the magnitude of the harm they have suffered. They must also respond in a timely manner. This article develops a simple methodology for measuring these effects and applies it to analyze the impact of the Indonesian economic crisis on household welfare. Using only pre-crisis household information, it estimates the compensating variation for Indonesian households following the 1997 Asian currency crisis and then explores the results with flexible nonparametric methods. It finds that virtually every household was severely affected, although the urban poor fared the worst. The ability of poor rural households to produce food mitigated the worst consequences of the high inflation. The distributional consequences are the same whether or not households are permitted to substitute toward relatively cheaper goods. The geographic location of the household matters even within urban or rural areas and household income categories. Households with young children may have suffered disproportionately large adverse effects. Copyright 2002, Oxford University Press.
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Article provided by Oxford University Press in its journal The World Bank Economic Review .
Volume (Year): 16 (2002)
Issue (Month): 3 (December)
Pages: 397-423
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Handle: RePEc:oup:wbecrv:v:16:y:2002:i:3:p:397-423Contact details of provider: Postal: Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK Fax: 01865 267 985 Email: Web page: http://wber.oxfordjournals.org/
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Paper Jed Friedman & James Levinsohn, 2001.
"The Distributional Impacts of Indonesia's Financial Crisis on Household Welfare: A 'Rapid Response' Methodology ,"
Working Papers
482, Research Seminar in International Economics, University of Michigan.
[Downloadable!] Jed Friedman & James Levinsohn, 2001.
"The Distributional Impacts of Indonesia's Financial Crisis on Household Welfare: "A Rapid Response Methodology" ,"
William Davidson Institute Working Papers Series
387, William Davidson Institute at the University of Michigan Stephen M. Ross Business School.
[Downloadable!] Jed Friedman & James Levinsohn, 2001.
"The Distributional Impacts of Indonesia's Financial Crisis on Household Welfare: A "Rapid Response" Methodology ,"
NBER Working Papers
8564, National Bureau of Economic Research, Inc.
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repec:fth:michin:446 is not listed on IDEAS
Angus Deaton & Christina Paxson, 1998.
"Economies of Scale, Household Size, and the Demand for Food ,"
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"Impacts of the Indonesian Economic Crisis: Price Changes and the Poor ,"
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Levinsphn, J. & Berry, S. & Friedman, J., 1999.
"Impacts of the Indonesian Economic Crisis: Price Changes and the Poor ,"
Working Papers
446, Research Seminar in International Economics, University of Michigan.
James A. Levinsohn & Steven T. Berry & Jed Friedman, 2003.
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NBER Chapters ,
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National Bureau of Economic Research, Inc.
[Downloadable!] Thomas, Duncan & Beegle, Kathleen & Frankenberg, Elizabeth & Sikoki, Bondan & Strauss, John & Teruel, Graciela, 2004.
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Frankenberg, E. & Thomas, D. & Beegle, K., 1999.
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Other versions: Ravallion, Martin & Bidani, Benu, 1994.
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Full
references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
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