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Mortality and Survivors? Consumption

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dc.creator Grimm, Michael
dc.date 2006
dc.date.accessioned 2013-10-16T07:00:22Z
dc.date.available 2013-10-16T07:00:22Z
dc.date.issued 2013-10-16
dc.identifier http://hdl.handle.net/10419/18504
dc.identifier ppn:515513415
dc.identifier.uri http://koha.mediu.edu.my:8181/xmlui/handle/10419/18504
dc.description In developing countries illness shocks can have a severe impact on household income. Few studies have so fare examined the effects of mortality. The major difference between illness and mortality shocks is that a death of a household member does not only induce direct costs such as medical and funeral costs and possibly a loss in income, but that also the number of consumption units in the household is reduced. Using data for Indonesia, I show that the economic costs related to the death of children and older persons seem to be fully compensated by the decrease of consumption units. In contrast, when prime-age adults die, survivors face additional costs and, in consequence, implement coping strategies. It is shown that these are quite efficient and it seems that in terms of consumption households even overcompensate their loss, although they may face a higher vulnerability in the longer term. The results suggest that the implementation of general formal safety nets can give priority to the insurance of other types of risks, such as unemployment, illness or natural disasters.
dc.language eng
dc.publisher Deutsches Institut für Wirtschaftsforschung (DIW) Berlin
dc.relation DIW-Diskussionspapiere 611
dc.rights http://www.econstor.eu/dspace/Nutzungsbedingungen
dc.subject I12
dc.subject O12
dc.subject J12
dc.subject D12
dc.subject ddc:330
dc.subject Mortality
dc.subject consumption smoothing
dc.subject risk
dc.subject micro-model of consumption growth
dc.subject Indonesia
dc.title Mortality and Survivors? Consumption
dc.type doc-type:workingPaper


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