This file is part of IDEAS, which uses RePEc data


[ Papers | Articles | Software | Books | Chapters | Authors | Institutions | JEL Classification | NEP reports | Search | New papers by email | Author registration | Rankings | Volunteers | FAQ | Blog | Help! ]

Mortality and survivor's consumption

Author info | Abstract | Publisher info | Download info | Related research | Statistics
Author Info
Michael Grimm () (University of Göttingen, Department of Economics, DIW and DIAL)

Additional information is available for the following registered author(s):

Abstract

The empirical evidence shows that in developing countries illness shocks can have a severe impact on household income. Few studies have so fare examined the effects of mortality. The major difference between illness and mortality shocks is that a death of a household member does not only induce direct costs such as medical and funeral costs and possibly a loss in income, but that also the number of consumption units in the household is reduced. Using data for Indonesia, I show that the economic costs related to the death of children and older persons seem to be fully compensated by the decrease of consumption units. In contrast, when prime-age adults die, survivors face additional costs and, in consequence, implement coping strategies. It is shown that these are quite efficient and it seems that in terms of consumption households even over-compensate their loss, although they may face a higher vulnerability in the longer term. The results suggest that the implementation of general formal safety nets can give priority to the insurance of other types of risks, such as unemployment, illness or natural disasters. _________________________________ Des études empiriques montrent que dans les pays en voie de développement des chocs sanitaires peuvent avoir des effets sévères sur le revenu des ménages. Peu d’analyses ont jusqu’à présent analysé l’impact de la mortalité. La différence majeure entre une période de maladie et la mortalité est qu’un décès d’un membre du ménage n’implique pas seulement des coûts directs comme des coûts funéraires et peut-être une perte de revenu, mais que le nombre des unités de consommation dans le ménage est également réduit. Utilisant des données de l’Indonésie, je montre que les coûts économiques reliés à un décès d’un enfant et d’une personne âgée semblent entièrement compensés par la réduction des unités de consommation. A l´inverse, si des adultes en âge d’activité décèdent, les survivants font face à des coûts supplémentaires et, en conséquence, instaurent des stratégies pour surmonter les difficultés engendrées par ces décès. Il est montré que ces stratégies sont très efficaces et il semble qu’en termes de consommation les ménages surcompensent eux-mêmes leur perte, il est cependant possible qu’ils fassent alors face à une plus forte vulnérabilité dans le long terme. Les résultats suggèrent que l’instauration des filets de sécurité peut donner priorité à l’assurance d’autres types de risques, comme le chômage, la maladie ou des catastrophes naturelles.

Download Info
To download:

If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In case of further problems read the IDEAS help file. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.dial.prd.fr/dial_publications/PDF/Doc_travail/2006-13.pdf
File Format: application/pdf
File Function: First version, 2006
Download Restriction: no

Publisher Info
Paper provided by DIAL (Développement, Institutions & Analyses de Long terme) in its series Working Papers with number DT/2006/13.

Download reference. The following formats are available: HTML, plain text, BibTeX, RIS (EndNote), ReDIF
Length: 32 pages
Date of creation: Jul 2006
Date of revision:
Handle: RePEc:dia:wpaper:dt200613

Contact details of provider:
Postal: 4, rue d'Enghien, 75010 Paris
Phone: + 33 1 53 24 14 50
Fax: + 33 1 53 24 14 51
Email:
Web page: http://www.dial.prd.fr/
More information through EDIRC

For technical questions regarding this item, or to correct its listing, contact: (Loic Le Pezennec).

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

Other versions of this item:

Find related papers by JEL classification:
D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
I12 - Health, Education, and Welfare - - Health - - - Health Production
J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

This paper has been announced in the following NEP Reports:

References listed on IDEAS
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.:
  1. David Mather & Cynthia Donovan & T. S. Jayne & Michael Weber & Edward Mazhangara & Linda Bailey & Kyeongwon Yoo & Takashi Yamano & Elliot Mghenyi, 2004. "A Cross-Country Analysis of Household Responses to Adult Mortality in Rural Sub-Saharan Africa: Implications for HIV/AIDS Mitigation and Rural Development Policies," International Development Working Papers 82, Department of Agricultural Economics, Michigan State University. [Downloadable!]
    Other versions:
  2. Arellano, Manuel & Bond, Stephen, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Blackwell Publishing, vol. 58(2), pages 277-97, April. [Downloadable!] (restricted)
  3. Lindelow, Magnus & Wagstaff, Adam, 2005. "Health shocks in China : are the poor and uninsured less protected ?," Policy Research Working Paper Series 3740, The World Bank. [Downloadable!]
  4. Klasen, Stephan & Woolard, Ingrid, 2000. "Surviving Unemployment without State Support: Unemployment and Household Formation in South Africa," IZA Discussion Papers 237, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  5. Lisa A. Cameron & Christopher Worswick, 2003. "The Labor Market as a Smoothing Device: Labor Supply Responses to Crop Loss," Review of Development Economics, Blackwell Publishing, vol. 7(2), pages 327-341, 05. [Downloadable!] (restricted)
  6. Thomas F. Crossley & Steven Kennedy, 2000. "The Stability of Self Assessed Health Status," CEPR Discussion Papers 421, Centre for Economic Policy Research, Research School of Social Sciences, Australian National University. [Downloadable!]
    Other versions:
  7. Paul Gertler & David I. Levine & Minnie Ames, 2004. "Schooling and Parental Death," The Review of Economics and Statistics, MIT Press, vol. 86(1), pages 211-225, 03. [Downloadable!] (restricted)
    Other versions:
  8. Ingrid Woolard & Stephan Klasen, 2005. "Determinants of Income Mobility and Household Poverty Dynamics in South Africa," The Journal of Development Studies, Taylor and Francis Journals, vol. 41(5), pages 865-897, July. [Downloadable!] (restricted)
    Other versions:
  9. Alwyn Young, 2005. "The Gift of the Dying: The Tragedy of Aids and the Welfare of Future African Generations," The Quarterly Journal of Economics, MIT Press, vol. 120(2), pages 423-466, May.
  10. Kochar, Anjini, 1995. "Explaining Household Vulnerability to Idiosyncratic Income Shocks," American Economic Review, American Economic Association, vol. 85(2), pages 159-64, May. [Downloadable!] (restricted)
  11. Beegle, Kathleen, 2003. "Labor effects of adult mortality in Tanzanian households," Policy Research Working Paper Series 3062, The World Bank. [Downloadable!]
    Other versions:
  12. Townsend, Robert M, 1995. "Consumption Insurance: An Evaluation of Risk-Bearing Systems in Low-Income Economies," Journal of Economic Perspectives, American Economic Association, vol. 9(3), pages 83-102, Summer. [Downloadable!] (restricted)
  13. Paul Gertler & Jonathan Gruber, 1997. "Insuring Consumption Against Illness," NBER Working Papers 6035, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  14. Elizabeth Frankenberg & James P. Smith & Duncan Thomas, 2004. "Economic Shocks, Wealth and Welfare," Labor and Demography 0403030, EconWPA. [Downloadable!]
  15. Yamano, Takashi & Jayne, T S, 2005. "Working-Age Adult Mortality and Primary School Attendance in Rural Kenya," Economic Development and Cultural Change, University of Chicago Press, vol. 53(3), pages 619-53, April.
    Other versions:
  16. Wagstaff, Adam, 2005. "The economic consequences of health shocks," Policy Research Working Paper Series 3644, The World Bank. [Downloadable!]
  17. Deaton, A. & Grosh, M., 1998. "Consumption," Papers 191, Princeton, Woodrow Wilson School - Development Studies.
  18. Hausman, Jerry A. & Taylor, William E., 1981. "Panel data and unobservable individual effects," Journal of Econometrics, Elsevier, vol. 16(1), pages 155-155, May. [Downloadable!] (restricted)
  19. Stefan Dercon, 2004. "Growth and Shocks: evidence from rural Ethiopia," Development and Comp Systems 0409036, EconWPA. [Downloadable!]
    Other versions:
  20. Paul Gertler & Jonathan Gruber, 2002. "Insuring Consumption Against Illness," American Economic Review, American Economic Association, vol. 92(1), pages 51-76, March. [Downloadable!] (restricted)
  21. Hausman, Jerry A & Taylor, William E, 1981. "Panel Data and Unobservable Individual Effects," Econometrica, Econometric Society, vol. 49(6), pages 1377-98, November. [Downloadable!] (restricted)
  22. Denis Cogneau & Michael Grimm, 2004. "The Measurement of Income Distribution Dynamics when Demographics are correlated with Income," Working Papers DT/2004/12, DIAL (Développement, Institutions & Analyses de Long terme), revised Dec 2004. [Downloadable!]
    Other versions:
  23. Jyotsna Jalan & Martin Ravallion, 1998. "Geographic Poverty Traps?," Boston University - Institute for Economic Development 86, Boston University, Institute for Economic Development.
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.)

  1. Beegle, Kathleen & De Weerdt, Joachim & Dercon, Stefan, 2006. "Adult mortality and consumption growth in the age of HIV/AIDS," Policy Research Working Paper Series 4082, The World Bank. [Downloadable!]
Statistics
Access and download statistics

Did you know? You can import bibliographic info in various formats into you bibliographic tool, or just into your word processor. See under "publisher info" on each abstract page.

This page was last updated on 2008-8-11.


This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.