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Do Microfinance Programs Help Families Insure Consumption Against Illness?

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  • Gertler, Paul
  • Levine, David I.
  • Moretti, Enrico

Abstract

Families in developing countries face enormous financial risks from major illness both in terms of the cost of medical care and the loss in income associated with reduced labor supply and productivity. We test whether access to microfinancial savings and lending institutions helps Indonesian families smooth consumption after declines in adult health. In general, results support the importance of these institutions in helping families to self-insure consumption against health shocks.

Suggested Citation

  • Gertler, Paul & Levine, David I. & Moretti, Enrico, 2003. "Do Microfinance Programs Help Families Insure Consumption Against Illness?," Center for International and Development Economics Research, Working Paper Series qt5811j217, Center for International and Development Economics Research, Institute for Business and Economic Research, UC Berkeley.
    • Handle: RePEc:cdl:ciders:qt5811j217
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    Cited by:

    1. Nguyen Thi Nhu Nguyet & Eiji Mangyo, 2010. "Vulnerability of households to health shocks: an Indonesian study," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 46(2), pages 213-235.
    2. Stephen Bazen & Claire Salmon, 2010. "The impact of parental health on child labor: the case of Bangladesh," Economics Bulletin, AccessEcon, vol. 30(4), pages 2549-2557.
    3. Weiss, John & Montgomery, Heather & Kurmanalieva, Elvira, 2003. "Micro finance and poverty reduction in Asia: what is the evidence?," MPRA Paper 33140, University Library of Munich, Germany.
    4. John Weiss & Heather Montgomery, 2005. "Great Expectations: Microfinance and Poverty Reduction in Asia and Latin America," Oxford Development Studies, Taylor & Francis Journals, vol. 33(3-4), pages 391-416.
    5. Asli Demirgüç-Kunt & Ross Levine, 2009. "Finance and Inequality: Theory and Evidence," Annual Review of Financial Economics, Annual Reviews, vol. 1(1), pages 287-318, November.
    6. World Bank, 2007. "Social Protection in Pakistan : Managing Household Risks and Vulnerability," World Bank Publications - Reports 7660, The World Bank Group.
    7. Lars Osberg & Andrew Sharpe, 2014. "Measuring Economic Insecurity in Rich and Poor Nations," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 60(S1), pages 53-76, May.
    8. Joseph P. Kaboski & Robert M. Townsend, 2011. "A Structural Evaluation of a Large‐Scale Quasi‐Experimental Microfinance Initiative," Econometrica, Econometric Society, vol. 79(5), pages 1357-1406, September.
    9. Leonardo Becchetti & Giuseppina Gianfreda, 2008. "When consumption heals producers: the effect of fair trade on marginalised producers’ health and productivity," Working Papers 86, ECINEQ, Society for the Study of Economic Inequality.

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