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Coping with shocks in rural Ethiopia

Author

Listed:
  • Zelalem Yilma
  • Anagaw Mebratie
  • Robert Sparrow
  • Degnet Abebaw
  • Marleen Dekker
  • Getnet Alemu
  • Arjun S. Bedi

Abstract

Using survey data and event history interviews undertaken in Ethiopia, we investigate which shocks trigger which coping responses and why. Relatively covariate natural and economic shocks trigger reductions in savings and in food consumption, while relatively idiosyncratic health shocks prompt reductions in savings and a reliance on borrowing. Surprisingly, across all shocks, households do not rely on gifts from family and friends, highlighting the need for formal protection systems. We argue that the insensitivity of food consumption to health shocks does not imply insurability but indicates that it is not a viable response to such a shock.

Suggested Citation

  • Zelalem Yilma & Anagaw Mebratie & Robert Sparrow & Degnet Abebaw & Marleen Dekker & Getnet Alemu & Arjun S. Bedi, 2014. "Coping with shocks in rural Ethiopia," Journal of Development Studies, Taylor & Francis Journals, vol. 50(7), pages 1009-1024, July.
  • Handle: RePEc:taf:jdevst:v:50:y:2014:i:7:p:1009-1024
    DOI: 10.1080/00220388.2014.909028
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    References listed on IDEAS

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    1. Wagstaff, Adam, 2007. "The economic consequences of health shocks: Evidence from Vietnam," Journal of Health Economics, Elsevier, vol. 26(1), pages 82-100, January.
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    Citations

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    Cited by:

    1. Ngigi, Marther W. & Müller, Ulrike & Birner, Regina, 2015. "The role of livestock portfolios and group-based approaches for building resilience in the face of accelerating climate change: An asset-based panel data analysis from rural Kenya," Discussion Papers 210703, University of Bonn, Center for Development Research (ZEF).
    2. Shigute, Zemzem & Strupat, Christoph & Burchi, Francesco & Alemu, Getnet & Bedi, Arjun S., 2017. "The Joint Effects of a Health Insurance and a Public Works Scheme in Rural Ethiopia," IZA Discussion Papers 10939, Institute for the Study of Labor (IZA).
    3. Zelalem Yilma & Anagaw Mebratie & Robert Sparrow & Marleen Dekker & Getnet Alemu & Arjun S. Bedi, 2015. "Impact of Ethiopia's Community Based Health Insurance on Household Economic Welfare," World Bank Economic Review, World Bank Group, vol. 29(suppl_1), pages 164-173.
    4. Lazzaroni, Sara & Wagner, Natascha, 2016. "Misfortunes never come singly: Structural change, multiple shocks and child malnutrition in rural Senegal," Economics & Human Biology, Elsevier, vol. 23(C), pages 246-262.
    5. Hirvonen, Kalle & Bossuyt, Anne & Pigois, Remy, 2017. "Complementarities between social protection and health sector policies: Evidence from the Productive Safety Net Program in Ethiopia," ESSP working papers 112, International Food Policy Research Institute (IFPRI).
    6. Tesfamicheal Wossen & Salvatore Falco & Thomas Berger & William McClain, 2016. "You are not alone: social capital and risk exposure in rural Ethiopia," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 8(4), pages 799-813, August.
    7. repec:eee:agisys:v:163:y:2018:i:c:p:7-15 is not listed on IDEAS
    8. Debebe, Z.Y. & Mebratie, A.D. & Sparrow, R.A. & Dekker, M. & Alemu, G. & Bedi, A.S., 2014. "Channels of impoverishment due to ill-health in rural Ethiopia," ISS Working Papers - General Series 76962, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.

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