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The long‐run effects of noncommunicable disease shocks

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Listed:
  • Tianxin Pan
  • Michael Palmer
  • Ajay Mahal
  • Peter Annear
  • Barbara McPake

Abstract

The health shocks literature typically does not take into account the temporal patterns of loss since the time of the shock. This limits understanding of the long‐run impact of health shocks and the capacity of individuals to cope over time. This study estimates the dynamic effects of a noncommunicable disease shock on the economic well‐being of working‐age individuals in China up to 6 years after onset. We find that after a period of temporal loss, individuals and their families can insure consumption against the average noncommunicable disease shock over the long‐run. We observe significant heterogeneity according to the persistence of the disease, value of household wealth, and health insurance status. Individuals with consistent onset, with below median wealth, and without health insurance are least equipped to smooth consumption over the long‐term.

Suggested Citation

  • Tianxin Pan & Michael Palmer & Ajay Mahal & Peter Annear & Barbara McPake, 2020. "The long‐run effects of noncommunicable disease shocks," Health Economics, John Wiley & Sons, Ltd., vol. 29(12), pages 1549-1565, December.
  • Handle: RePEc:wly:hlthec:v:29:y:2020:i:12:p:1549-1565
    DOI: 10.1002/hec.4154
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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Chris Sampson’s journal round-up for 7th December 2020
      by Chris Sampson in The Academic Health Economists' Blog on 2020-12-07 12:00:03

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