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Mortality and survivors' consumption

  • Grimm, Michael

In contrast to health shocks, mortality shocks do not only induce direct costs such as medical and funeral expenses and possibly income loss, but also reduce the number of consumption units in the household. Using data from Indonesia, it is shown that the economic costs related to the death of children and older persons seem to be fully compensated for by the decrease in consumption units. In contrast, when prime-age adults die, survivors face additional costs and, in consequence, use coping strategies. These strategies seem to be quite effective, although households may face higher long-term vulnerability.

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File URL: http://basepub.dauphine.fr/xmlui/bitstream/123456789/4355/1/2006-13.pdf
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Paper provided by Paris Dauphine University in its series Economics Papers from University Paris Dauphine with number 123456789/4355.

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Date of creation: 2010
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Publication status: Published in Oxford Bulletin of Economics and Statistics, 2010, Vol. 72, no. 2. pp. 146-171.Length: 25 pages
Handle: RePEc:dau:papers:123456789/4355
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