Mortality shocks and survivors’ consumption growth
Oxford Bulletin of Economics and Statistics , Volume 72 - Issue 2 p. 146- 171
In contrast to health shocks, mortality shocks do not only induce direct costs such as medical and funeral expenses and possibly income loss, but also reduce the number of consumption units in the household. Using data from Indonesia, it is shown that the economic costs related to the death of children and older persons seem to be fully compensated for by the decrease in consumption units. In contrast, when prime-age adults die, survivors face additional costs and, in consequence, use coping strategies. These strategies seem to be quite effective, although households may face higher long-term vulnerability.
|ISS Staff Group 1: Economics of Sustainable Development|
|Oxford Bulletin of Economics and Statistics|
|Organisation||International Institute of Social Studies of Erasmus University (ISS)|
Grimm, M. (2010). Mortality shocks and survivors’ consumption growth. Oxford Bulletin of Economics and Statistics, 72(2), 146–171. doi:10.1111/j.1468-0084.2009.00566.x