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Risk Coping Measures against Different Types of Shocks: Empirical Evidence from Vietnam Household Living Standard Survey

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  • Masako Hasegawa

    (Ph.D. student, Osaka School of International Public Policy (OSIPP))

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    Abstract

    Income variability and additional medical consumption should be major shocks for farm households in developing countries. This paper investigates risk coping measures against these different types of shocks using Vietnamese Living Standard Measurement Study. Estimating results suggest that productive fixed assets are used for medical shock, while non-productive assets such as consumer goods are disposed for coping with income shock. This can be interpreted by nature of shocks, loan interest rate for coping shocks, and households' time preference under liquidity constraint. Consumer goods could be accumulated for precautionary motive and heavy debt of sickness may result in loss of productive fixed assets.

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    File URL: http://www.osipp.osaka-u.ac.jp/archives/DP/2010/DP2010E006.pdf
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    Bibliographic Info

    Paper provided by Osaka School of International Public Policy, Osaka University in its series OSIPP Discussion Paper with number 10E006.

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    Length: 33 pages
    Date of creation: May 2010
    Date of revision:
    Handle: RePEc:osp:wpaper:10e006

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    Related research

    Keywords: income and sickness shock; risk coping measures; assets; Vietnamese farm household;

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    Cited by:
    1. Thomas, Timothy & Christiaensen, Luc & Do, Quy Toan & Trung, Le Dang, 2010. "Natural disasters and household welfare : evidence from Vietnam," Policy Research Working Paper Series 5491, The World Bank.
    2. World Bank, 2012. "The Welfare Effects of Extreme Weather Events : Insights from Three APEC Case Studies," World Bank Other Operational Studies 13039, The World Bank.

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