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Mortality and survivors' consumption

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  • Grimm, Michael

Abstract

In contrast to health shocks, mortality shocks do not only induce direct costs such as medical and funeral expenses and possibly income loss, but also reduce the number of consumption units in the household. Using data from Indonesia, it is shown that the economic costs related to the death of children and older persons seem to be fully compensated for by the decrease in consumption units. In contrast, when prime-age adults die, survivors face additional costs and, in consequence, use coping strategies. These strategies seem to be quite effective, although households may face higher long-term vulnerability.

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Bibliographic Info

Paper provided by Paris Dauphine University in its series Economics Papers from University Paris Dauphine with number 123456789/4355.

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Date of creation: 2010
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Publication status: Published in Oxford Bulletin of Economics and Statistics, 2010, Vol. 72, no. 2. pp. 146-171.Length: 25 pages
Handle: RePEc:dau:papers:123456789/4355

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Keywords: modèle micro-économique de la croissance de consommation; risque; lissage de consommation; Mortalité; Indonesia; micro-model of consumption growth; risk; consumption smoothing; Mortality; Indonésie;

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Cited by:
  1. Kathleen Beegle & Joachim De Weerdt & Stefan Dercon, 2008. "Adult Mortality and Consumption Growth in the Age of HIV/AIDS," Economic Development and Cultural Change, University of Chicago Press, vol. 56, pages 299-326.
  2. Toman Omar Mahmoud & Rainer Thiele, 2009. "Does AIDS-Related Mortality Reduce Per-Capita Household Income? Evidence from Rural Zambia," Kiel Working Papers 1530, Kiel Institute for the World Economy.
  3. Jungho Kim & Alexia Prskawetz, 2010. "External Shocks, Household Consumption and Fertility in Indonesia," Population Research and Policy Review, Springer, vol. 29(4), pages 503-526, August.
  4. Günther, Isabel & Harttgen, Kenneth, 2009. "Estimating Households Vulnerability to Idiosyncratic and Covariate Shocks: A Novel Method Applied in Madagascar," World Development, Elsevier, vol. 37(7), pages 1222-1234, July.

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