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The Human Cost of Economic Crises

Author

Listed:
  • Marcus Alexander

    (Harvard University)

  • Matthew Harding

    (Department of Economics, Stanford University)

  • Carlos Lamarche

    (University of Oklahoma)

Abstract

Policy makers rely on a mix of government spending and tax cuts to address imbalances in the economy during an economic crisis. However, little discussion appears to focus explicitly on the costs of economic crises in terms of human lives, especially the lives of the most vulnerable members of society, infants. This paper quantifies the effect periods of prolonged economic recession have on infant mortality. Moreover, we investigate whether different levels of public spending on health across advanced industrialized democracies can mitigate the impact of crises on infant mortality. We find that economic crises are extremely costly and lead to a more than proportional increase in infant mortality in the short-run. Substantial public spending on health is required in order to limit their impact.

Suggested Citation

  • Marcus Alexander & Matthew Harding & Carlos Lamarche, 2009. "The Human Cost of Economic Crises," Discussion Papers 08-029, Stanford Institute for Economic Policy Research.
    • Handle: RePEc:sip:dpaper:08-029
    as

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    File URL: http://www-siepr.stanford.edu/repec/sip/08-029.pdf
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    References listed on IDEAS

    as
    1. Carmen M. Reinhart & Kenneth S. Rogoff, 2009. "The Aftermath of Financial Crises," American Economic Review, American Economic Association, vol. 99(2), pages 466-472, May.
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    6. Ruhm, Christopher J., 2005. "Healthy living in hard times," Journal of Health Economics, Elsevier, vol. 24(2), pages 341-363, March.
    7. repec:pri:cheawb:case_paxson_economic_status_paper.pdf is not listed on IDEAS
    8. Christopher J. Ruhm, 2000. "Are Recessions Good for Your Health?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 115(2), pages 617-650.
    9. Marcus Alexander & Matthew Harding & Carlos Lamarche, "undated". "The Political Economy of Heterogeneous Development: Quartile Effects of Income and Education," Discussion Papers 07-052, Stanford Institute for Economic Policy Research.
    10. Koenker, Roger W & Bassett, Gilbert, Jr, 1978. "Regression Quantiles," Econometrica, Econometric Society, vol. 46(1), pages 33-50, January.
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    Full references (including those not matched with items on IDEAS)

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    Keywords

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    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

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