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Originalsprache | Englisch |
---|---|
Fachzeitschrift | Applied Economic Perspectives and Policy |
Frühes Online-Datum | 2 Jan. 2025 |
Publikationsstatus | Elektronisch veröffentlicht (E-Pub) - 2 Jan. 2025 |
Abstract
Households in developing countries are often impaired in their economic opportunities by major health shocks. In this article, we first investigate the impact of a health shock on rural household consumption and explore the mechanisms how the health shock brings a household into indebtedness. We then examine the role of health insurance in reducing the reliance on borrowing as a shock coping strategy. Our estimations show that while rural households are able to insure non-health-related consumption, a health shock pushes them into severe indebtedness by increasing informal borrowing to smooth consumption. Promotion of health insurance is recommended as it helps to protect households from falling into severe indebtedness when a health shock strikes.
ASJC Scopus Sachgebiete
- Sozialwissenschaften (insg.)
- Entwicklung
- Volkswirtschaftslehre, Ökonometrie und Finanzen (insg.)
- Volkswirtschaftslehre und Ökonometrie
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in: Applied Economic Perspectives and Policy, 02.01.2025.
Publikation: Beitrag in Fachzeitschrift › Artikel › Forschung › Peer-Review
}
TY - JOUR
T1 - Health shock and indebtedness
T2 - Does having access to health insurance reduce the reliance on borrowing as a shock coping strategy?
AU - Nguyen, Linh D.
AU - Nguyen, Thanh T.
AU - Nguyen, Thanh T.
AU - Grote, Ulrike
N1 - Publisher Copyright: © 2025 The Author(s). Applied Economic Perspectives and Policy published by Wiley Periodicals LLC on behalf of Agricultural & Applied Economics Association.
PY - 2025/1/2
Y1 - 2025/1/2
N2 - Households in developing countries are often impaired in their economic opportunities by major health shocks. In this article, we first investigate the impact of a health shock on rural household consumption and explore the mechanisms how the health shock brings a household into indebtedness. We then examine the role of health insurance in reducing the reliance on borrowing as a shock coping strategy. Our estimations show that while rural households are able to insure non-health-related consumption, a health shock pushes them into severe indebtedness by increasing informal borrowing to smooth consumption. Promotion of health insurance is recommended as it helps to protect households from falling into severe indebtedness when a health shock strikes.
AB - Households in developing countries are often impaired in their economic opportunities by major health shocks. In this article, we first investigate the impact of a health shock on rural household consumption and explore the mechanisms how the health shock brings a household into indebtedness. We then examine the role of health insurance in reducing the reliance on borrowing as a shock coping strategy. Our estimations show that while rural households are able to insure non-health-related consumption, a health shock pushes them into severe indebtedness by increasing informal borrowing to smooth consumption. Promotion of health insurance is recommended as it helps to protect households from falling into severe indebtedness when a health shock strikes.
KW - consumption smoothing
KW - health insurance
KW - health shock
KW - indebtedness
UR - http://www.scopus.com/inward/record.url?scp=85214023639&partnerID=8YFLogxK
U2 - 10.1002/aepp.13495
DO - 10.1002/aepp.13495
M3 - Article
AN - SCOPUS:85214023639
JO - Applied Economic Perspectives and Policy
JF - Applied Economic Perspectives and Policy
SN - 2040-5790
ER -