Adverse health shocks, social insurance and household consumption: evidence from Indonesia’s Askeskin program

Kolukuluri, Kalyan

doi:10.1007/s10754-022-09329-6

Cited by 2 publications

(3 citation statements)

References 21 publications

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“…However, constraints on medical resources supply exacerbate the negative effect of infectious diseases on consumption. Health insurance is identified as an effective strategy for households to cope with health shocks ( 21 ), and this finding provides further empirical support on the effects of health insurance in the context of epidemics. Furthermore, regarding the heterogeneity among medical resource constraints, the adverse impact of infectious disease shocks on household consumption is more pronounced for those facing severe constraints on health resources or residing in remote and poor areas, corroborating previous conclusions ( 4 ).…”

Section: Discussionmentioning

confidence: 71%

“…Access to healthcare resources is a significant determinant of household consumption, especially in the context of infectious diseases ( 21 ). Rural households often encounter varying levels of access to medical insurance and healthcare resources, which can influence their capacity to manage the impact of infectious disease outbreaks and, subsequently, their consumption behavior.…”

Section: Resultsmentioning

confidence: 99%

“…Hypothesis 1 suggests that infectious diseases, due to their inherent risk and potential for impairment, lead to a decrease in consumption levels among rural households. The immediate negative income shock and increased risk aversion resulting from these diseases compel households to cut back on spending and increase savings, thereby reducing short-term consumption (19)(20)(21). Hypothesis 2 explores the temporal dynamics of this impact, proposing that the effects of infectious disease shocks on household consumption are likely to diminish over time.…”

Section: Introductionmentioning

confidence: 99%

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The impact of infectious disease experience on household consumption: evidence from rural China

Han,

Xue,

2024

Front. Public Health

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ObjectiveThe issue of low consumption among rural households in China has a longstanding history, and the experience of infectious diseases may exacerbate the existing challenges in fostering consumption growth. However, studies that characterize the impact of infectious diseases on household consumption are limited in China. This study aims to explore rural household consumption responses to infectious diseases post-assessment, and identify the underlying mechanisms.MethodsA total of 1,539 rural households from China Family Panel Studies (CFPS) datasets of 2014, 2016, 2018, and 2020 were recruited as the study sample. The presence of infectious disease experience was employed as the independent variable and household consumption as the dependent variable. A panel fixed effects (FE) regression model was initially employed to identify the influence of infectious disease experiences on rural household consumption. The instrumental variable (IV) method was used to address potential endogeneity between independent and dependent variables. Robustness checks such as Propensity Score Matching (PSM) test were employed to ensure the reliability of the findings.ResultsThe results reveal a statistically significant negative impact of infectious disease experiences on consumption over time, becoming no more significant at around 7–9 years post-disaster. This effect leads to more pronounced consumption deprivation for households with limited health insurance coverage and heightened healthcare resource constraints. The mechanism test indicates that infectious disease experiences affect the consumption levels of rural households through channels that include income constraints, the crowding-out of healthcare expenditure, and risk perception, with the precautionary savings motive acting as a moderator. Furthermore, the diminishing effect of infectious diseases on individual consumption surpasses that of natural disasters. Temporal discrepancy is observed in the impacts of infectious and chronic disease shocks on household consumption. The accumulation of liquid assets emerges as an effective strategy for households to mitigate the impact of infectious disease shocks.ConclusionThe findings underscore the importance of integrating short- and long-term policies to bolster consumption capacity, strategically allocate inter-regional medical resources, and fortify the resilience of rural households against economic risks.

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Section: Discussionmentioning

confidence: 71%

Section: Resultsmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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The impact of infectious disease experience on household consumption: evidence from rural China

Han,

Xue,

2024

Front. Public Health

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Impact of Chronic Disease Shocks on Household Consumption in China: The Role of Multi-Level Health Insurance

Han,

Nan,

Yang

et al. 2024

Sage Open

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Expanding and enhancing the quality of consumption is crucial to satisfy the increasing demand for a higher standard of living. However, the rising risk of chronic diseases impacts not only the level of consumption but also impedes the optimization of consumption patterns. This research utilizes Staggered Difference-in-Differences (DID) and Difference-in-Differences-in-Differences (DDD) models to evaluate the effects of chronic disease shocks on both the levels and structures of household consumption, leveraging data from the China Family Panel Studies (CFPS) across four survey waves from 2012 to 2018. Additionally, the study examines the effects and mechanisms of the multi-level health insurance system in mitigating the impact of chronic disease shocks. The study discerns a significant decrease in household consumption expenditure, obstruction in the enhancement of consumption structures, and a constriction of consumption diversity attributable to chronic disease shocks. Heterogeneous analysis reveals that the impact of chronic shocks varies across factors such as age, capital endowment, urban versus rural residence, and the availability of healthcare resources. Moreover, the analysis highlights the heterogeneous mitigating effects of the multi-level health insurance system, particularly through diminishing out-of-pocket medical expenses and the propensity for precautionary savings. The findings accentuate the imperative for the enhancement and equalization of the multi-level health insurance system to fortify household consumption, offering significant policy insights for the realization of the “Healthy China” vision. JEL Classification: P36, D12.

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Adverse health shocks, social insurance and household consumption: evidence from Indonesia’s Askeskin program

Cited by 2 publications

References 21 publications

The impact of infectious disease experience on household consumption: evidence from rural China

The impact of infectious disease experience on household consumption: evidence from rural China

Impact of Chronic Disease Shocks on Household Consumption in China: The Role of Multi-Level Health Insurance

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