IDEAS home Printed from https://ideas.repec.org/p/wbk/wbrwps/2508.html
   My bibliography  Save this paper

Sources of financial assistance for households suffering an adult death in Kagera, Tanzania

Author

Listed:
  • Lundberg, Mattias
  • Over, Mead
  • Mujinja, Phare

Abstract

The AIDS crisis in Africa and elsewhere compels us to design appropriate assistance policies for households experience a death. Policies should take into account and strengthen existing household coping strategies, rather than duplicate or undermine them. The authors investigate the nature of coping mechanisms among a sample of households in Kagera, Tanzania in 1991-1994. They estimate the magnitude and timing of receipts of private transfers, credits, and public assistance by households with different characteristics. Their empirical strategy addresses three common methodological difficulties in estimating the impact of adult death: selection bias, endogeneity, and unobserved heterogeneity. The authors find that less-poor households (those with more physical and human capital) benefit from larger receipts of private assistance than poor households. Resource-abundant households are wealthy in social assets as well as physical assets. Poor households, on the other hand, rely relatively more on loans than private transfers, for up to a year after a death. This suggests that credit acts as insurance for households where informal interhousehold assistance contracts are not enforceable. A donor in Kagera can be sure that assistance to a wealthy household may not be able to return the favor. Assistance to the poor is more likely to come with more formal arrangements for repayment. Formal-sector assistance is targeted toward the poor immediately following the death. The impact of adult deaths on households may be mitigated either ex ante, through programs that minimize poverty and vulnerability, or ex post, by assistance targeted to the poorest and most vulnerable households. In addition, to the extent to which micro-credit programs improve access and lower the total costs of borrowing, they may not only stimulate growth and investment but also help resource-poor households overcome the impact of an adult death in the areas hard-hit by the AIDS epidemic.

Suggested Citation

  • Lundberg, Mattias & Over, Mead & Mujinja, Phare, 2000. "Sources of financial assistance for households suffering an adult death in Kagera, Tanzania," Policy Research Working Paper Series 2508, The World Bank.
  • Handle: RePEc:wbk:wbrwps:2508
    as

    Download full text from publisher

    File URL: http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2001/01/26/000094946_0101170531277/Rendered/PDF/multi_page.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Rosenzweig, Mark R & Wolpin, Kenneth I, 1993. "Credit Market Constraints, Consumption Smoothing, and the Accumulation of Durable Production Assets in Low-Income Countries: Investment in Bullocks in India," Journal of Political Economy, University of Chicago Press, vol. 101(2), pages 223-244, April.
    2. Jalan, Jyotsna & Ravallion, Martin, 1999. "Are the poor less well insured? Evidence on vulnerability to income risk in rural China," Journal of Development Economics, Elsevier, vol. 58(1), pages 61-81, February.
    3. Paul Gertler & Jonathan Gruber, 2002. "Insuring Consumption Against Illness," American Economic Review, American Economic Association, vol. 92(1), pages 51-70, March.
    4. Rosenzweig, Mark R & Binswanger, Hans P, 1993. "Wealth, Weather Risk and the Composition and Profitability of Agricultural Investments," Economic Journal, Royal Economic Society, vol. 103(416), pages 56-78, January.
    5. Lampman, Robert J & Smeeding, Timothy M, 1983. "Interfamily Transfers as Alternatives to Government Transfers to Persons," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 29(1), pages 45-66, March.
    6. Banerjee, Abhijit V & Newman, Andrew F, 1993. "Occupational Choice and the Process of Development," Journal of Political Economy, University of Chicago Press, vol. 101(2), pages 274-298, April.
    7. Fafchamps, Marcel & Lund, Susan, 2003. "Risk-sharing networks in rural Philippines," Journal of Development Economics, Elsevier, vol. 71(2), pages 261-287, August.
    8. Bloom, David E. & Mahal, Ajay S., 1997. "Does the AIDS epidemic threaten economic growth?," Journal of Econometrics, Elsevier, vol. 77(1), pages 105-124, March.
    9. Eswaran, Mukesh & Kotwal, Ashok, 1989. "Credit as insurance in agrarian economies," Journal of Development Economics, Elsevier, vol. 31(1), pages 37-53, July.
    10. Margaret Grosh & Paul Glewwe, 2000. "Designing Household Survey Questionnaires for Developing Countries," World Bank Publications, The World Bank, number 25338, April.
    11. Rosenzweig, Mark R, 1988. "Risk, Implicit Contracts and the Family in Rural Areas of Low-income Countries," Economic Journal, Royal Economic Society, vol. 98(393), pages 1148-1170, December.
    12. Gelbach, Jonath B. & Pritchett, Lant H., 1997. "More for the poor is less for the poor : the politics of targeting," Policy Research Working Paper Series 1799, The World Bank.
    13. Davidson, Russell & MacKinnon, James G., 1993. "Estimation and Inference in Econometrics," OUP Catalogue, Oxford University Press, number 9780195060119.
    14. Fafchamps, Marcel, 1992. "Solidarity Networks in Preindustrial Societies: Rational Peasants with a Moral Economy," Economic Development and Cultural Change, University of Chicago Press, vol. 41(1), pages 147-174, October.
    15. Kinsey, Bill & Burger, Kees & Gunning, Jan Willem, 1998. "Coping with drought in Zimbabwe: Survey evidence on responses of rural households to risk," World Development, Elsevier, vol. 26(1), pages 89-110, January.
    16. Coate, S. & Ravallion, M., 1989. "Reciprocity Without Commitment: Characterization and Performance of Informal Risk-Sharing Arrangements," Papers 96, Warwick - Development Economics Research Centre.
    17. Udry, Christopher, 1990. "Credit Markets in Northern Nigeria: Credit as Insurance in a Rural Economy," World Bank Economic Review, World Bank Group, vol. 4(3), pages 251-269, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kathleen Beegle & Joachim De Weerdt & Stefan Dercon, 2008. "Adult Mortality and Consumption Growth in the Age of HIV/AIDS," Economic Development and Cultural Change, University of Chicago Press, vol. 56, pages 299-326.
    2. Ainsworth, Martha & Dayton, Julia, 2001. "The impact of the AIDS epidemic on the health of the elderly in Tanzania," Policy Research Working Paper Series 2649, The World Bank.
    3. Hagen, Jens & Omar Mahmoud, Toman & Trofimenko, Natalia, 2010. "Orphanhood and critical periods in children's human capital formation: Long-run evidence from North-Western Tanzania," Kiel Working Papers 1649, Kiel Institute for the World Economy (IfW).
    4. Yamano, Takashi & Jayne, T S, 2005. "Working-Age Adult Mortality and Primary School Attendance in Rural Kenya," Economic Development and Cultural Change, University of Chicago Press, vol. 53(3), pages 619-653, April.
    5. Chapoto, Antony & Jayne, Thomas S., 2005. "Impact of HIV/AIDS-Related Deaths on Rural Farm Households' Welfare in Zambia: Implications for Poverty Reduction Strategies," Food Security Collaborative Working Papers 54473, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    6. Yamano, Takashi & Shimamura, Yasuharu & Sserunkuuma, Dick, 2006. "Living Arrangements and Schooling of Orphaned Children and Adolescents in Uganda," Economic Development and Cultural Change, University of Chicago Press, vol. 54(4), pages 833-856, July.
    7. Jayne, Thomas S. & Mather, David & Mghenyi, Elliot W., 2006. "Smallholder Farming Under Increasingly Difficult Circumstances: Policy and Public Investment Priorities for Africa," Food Security International Development Policy Syntheses 54507, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    8. Yamano, Takashi & Jayne, Thomas S., 2002. "Measuring the Impacts of Prime-age Adult Death on Rural Households in Kenya," Food Security Collaborative Working Papers 55152, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    9. Lawrence Haddad & Stuart Gillespie, 2001. "Effective food and nutrition policy responses to HIV|AIDS: what we know and what we need to know," Journal of International Development, John Wiley & Sons, Ltd., vol. 13(4), pages 487-511.
    10. Christopher Ksoll, 2007. "Family Networks and Orphan Caretaking in Tanzania," Economics Series Working Papers 361, University of Oxford, Department of Economics.
    11. Sebastian Linnemayr, 2010. "Consumption Smoothing and HIV/AIDS: The Case of Two Communities in South Africa," Economic Development and Cultural Change, University of Chicago Press, vol. 58(3), pages 475-506, April.
    12. Hagen, Jens & Omar Mahmoud, Toman & Trofimenko, Natalia, 2010. "Orphanhood and Critical Periods in Children's Human Capital Formation: Long-Run Evidence from North-Western Tanzania," Proceedings of the German Development Economics Conference, Hannover 2010 33, Verein für Socialpolitik, Research Committee Development Economics.
    13. Antony Chapoto & T. S. Jayne, 2008. "Impact of AIDS-Related Mortality on Farm Household Welfare in Zambia," Economic Development and Cultural Change, University of Chicago Press, vol. 56, pages 327-374.
    14. Yamano, Takashi & Jayne, T. S., 2004. "Measuring the Impacts of Working-Age Adult Mortality on Small-Scale Farm Households in Kenya," World Development, Elsevier, vol. 32(1), pages 91-119, January.
    15. Haddad, Lawrence James & Gillespie, Stuart, 2001. "Effective food and nutrition policy responses to HIV/AIDS," FCND discussion papers 112, International Food Policy Research Institute (IFPRI).
    16. Arndt, Channing & Wobst, Peter, 2002. "HIV/AIDS and labor markets in Tanzania," TMD discussion papers 102, International Food Policy Research Institute (IFPRI).
    17. Kathleen Beegle & Joachim De Weerdt & Stefan Dercon, 2008. "Adult Mortality and Consumption Growth in the Age of HIV/AIDS," Economic Development and Cultural Change, University of Chicago Press, vol. 56, pages 299-326.

    More about this item

    Keywords

    Rural Poverty Reduction; Safety Nets and Transfers; Services&Transfers to Poor; VN-Acb Mis -- IFC-00535908; Housing&Human Habitats;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:2508. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Roula I. Yazigi). General contact details of provider: http://edirc.repec.org/data/dvewbus.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.