Catastrophic Health Expenditure and Household Well-Being
According to the catastrophic health expenditure methodology a house-hold is in catastrophe if its health out-of-pocket budget share exceeds acritical threshold. We develop a conceptual framework for addressing threequestions in relation to this methodology, namely: 1. Can a budget sharebe informative about the sign of a change in welfare? 2. Is there a positiveassociation between a household's poverty shortfall and its health out-of-pocket budget share? 3. Does an increase in population coverage of ahealth insurance scheme always result in a reduction of the prevalence ofcatastrophic expenditures?
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