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Shocks to Philippine households: Incidence, idiosyncrasy and impact

Author

Listed:
  • Joseph J. Capuno

    (School of Economics, University of the Philippines)

  • Aleli D. Kraft

    (School of Economics, University of the Philippines)

  • Stella A. Quimbo

    (School of Economics, University of the Philippines)

  • Carlos Antonio R. Tan, Jr.

    (School of Economics, University of the Philippines)

Abstract

With their country located in the Pacific Ring of Fire and in the monsoon belt, Philippine households are perennially exposed to natural disasters and calamities. In addition, they face health, economic and sociopolitical risks. Using a nationally representative sample of households, we assess the overall incidence of different shocks, the extent to which they simultaneously affect households in the same area, and their impact. A huge majority of households experience shocks, with the incidence of different shocks being roughly the same for poor and rich households. Natural and economic shocks appear to affect more households simultaneously in the same area than sociopolitical shocks, health shocks and deaths. Health shocks and deaths lead to greater short-term and long-term impacts. Richer households are able to recover better than the poor. We draw some implications for the design and targeting of social health insurance, disaster management and other social protection programs.

Suggested Citation

  • Joseph J. Capuno & Aleli D. Kraft & Stella A. Quimbo & Carlos Antonio R. Tan, Jr., 2013. "Shocks to Philippine households: Incidence, idiosyncrasy and impact," UP School of Economics Discussion Papers 201312, University of the Philippines School of Economics.
  • Handle: RePEc:phs:dpaper:201312
    as

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    File URL: http://www.econ.upd.edu.ph/dp/index.php/dp/article/view/737
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    References listed on IDEAS

    as
    1. De Weerdt, Joachim & Dercon, Stefan, 2006. "Risk-sharing networks and insurance against illness," Journal of Development Economics, Elsevier, vol. 81(2), pages 337-356, December.
    2. Owen O'Donnell & Eddy van Doorslaer & Adam Wagstaff & Magnus Lindelow, 2008. "Analyzing Health Equity Using Household Survey Data : A Guide to Techniques and Their Implementation," World Bank Publications, The World Bank, number 6896.
    3. Paul Gertler & Jonathan Gruber, 2002. "Insuring Consumption Against Illness," American Economic Review, American Economic Association, vol. 92(1), pages 51-70, March.
    4. Deon Filmer & Lant Pritchett, 2001. "Estimating Wealth Effects Without Expenditure Data—Or Tears: An Application To Educational Enrollments In States Of India," Demography, Springer;Population Association of America (PAA), vol. 38(1), pages 115-132, February.
    5. Stella Luz A. Quimbo & Aleli D. Kraft & Joseph J. Capuno & Carlos Tan, . "How much protection does PhilHealth provide Filipinos?," PCED Policy Notes, Philippine Center for Economic Development.
    6. Orbeta, Aniceto Jr. C., 2011. "Social Protection in the Philippines: Current State and Challenges," Discussion Papers DP 2011-02, Philippine Institute for Development Studies.
    7. Rasmus Heltberg & Niels Lund, 2009. "Shocks, Coping, and Outcomes for Pakistan's Poor: Health Risks Predominate," Journal of Development Studies, Taylor & Francis Journals, vol. 45(6), pages 889-910.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Household shocks; coping mechanisms; welfare;

    JEL classification:

    • D10 - Microeconomics - - Household Behavior - - - General
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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