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The economic impact of chronic diseases: How do households respond to shocks? Evidence from Russia

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  • Abegunde, Dele Olawale
  • Stanciole, Anderson E.

Abstract

The epidemiological burden of chronic diseases is increasing worldwide and there is very little empirical evidence regarding the economic impact of chronic diseases on individuals and households. The primary objective of this paper is to explore the evidence on how chronic diseases affect household healthcare expenditure, non-health consumption, labour (earned) income, and to demonstrate how transfers may provide some insurance against shocks from chronic diseases. We have explicated a two-part Heckit model on household level data obtained from the Living Standard Measurement Surveys (LSMS) from Russia to control for nontrivial proportion of zeros in the dependent variables, skewed distribution of expenditure data and endogeneity. The results indicate that chronic diseases are significantly associated with higher levels of household healthcare expenditure in Russia and productivity losses reflected by reduced labour supply and reduced household labour income. Non-healthcare expenditure also increased. Results suggest that households are able to insure non-health consumption against chronic diseases, possibly from transfers, which also increased. In addition, socioeconomic status indicators significantly explained the impact of chronic diseases on households. Insurance and higher average education in households were associated with higher healthcare expenditure. Household transfers were significant in Russia despite an appreciable level of insurance cover. We conclude that households depend on informal coping mechanisms in the face of chronic diseases, irrespective of insurance cover. These results have implications for policies regarding the financing of treatment and control of chronic diseases in the country studied.

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  • Abegunde, Dele Olawale & Stanciole, Anderson E., 2008. "The economic impact of chronic diseases: How do households respond to shocks? Evidence from Russia," Social Science & Medicine, Elsevier, vol. 66(11), pages 2296-2307, June.
  • Handle: RePEc:eee:socmed:v:66:y:2008:i:11:p:2296-2307
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    Cited by:

    1. Yevgeniy Goryakin & Lorenzo Rocco & Marc Suhrcke & Bayard Roberts & Martin McKee, 2014. "The effect of health on labour supply in nine former Soviet Union countries," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 15(1), pages 57-68, January.
    2. Burggraf, Christine & Kuhn, Lena & Zhao, Quiran & Teuber, Ramona & Glauben, Thomas, 2015. "Nutrition transition in two emerging countries: A comparison between China and Russia," 2015 Conference, August 9-14, 2015, Milan, Italy 211375, International Association of Agricultural Economists.
    3. Virginie Comblon & Karine Marazyan, 2017. "Labor Supply Responses to Chronic Illness in Senegal," Working Papers 20170006, Université Paris 1 Panthéon Sorbonne, UMR Développement et Sociétés.
    4. Ebaidalla Mahjoub Ebaidalla & Mohammed Elhaj Mustafa Ali, 2017. "Determinants and Impact of Households’s Out-of-Pocket Health Care Expenditure in Sudan: Evidence From Urban and Rural Population," Working Papers 1170, Economic Research Forum, revised 12 2017.
    5. Sanjay Mohanty & Rajesh Chauhan & Sumit Mazumdar & Akanksha Srivastava, 2014. "Out-of-pocket Expenditure on Health Care Among Elderly and Non-elderly Households in India," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 115(3), pages 1137-1157, February.
    6. repec:spr:soinre:v:133:y:2017:i:2:d:10.1007_s11205-016-1388-0 is not listed on IDEAS
    7. Burggraf, Christine & Kuhn, Lena & Zhao, Qiran & Glauben, Thomas & Teuber, Ramona, 2014. "Economic growth and nutrition transition: an empirical study comparing demand elasticities for foods in China and Russia," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182828, European Association of Agricultural Economists.
    8. Arsenijevic, Jelena & Pavlova, Milena & Groot, Wim, 2013. "Measuring the catastrophic and impoverishing effect of household health care spending in Serbia," Social Science & Medicine, Elsevier, pages 17-25.
    9. repec:pra:mprapa:10841 is not listed on IDEAS
    10. Yevgeniy Goryakin & Marc Suhrcke, 2017. "The impact of poor adult health on labor supply in the Russian Federation," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 18(3), pages 361-372, April.

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