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Risks, Coping And Roles of Access to Financial Services

Author

Listed:
  • Meherun Ahmed

    (Asian University for Women)

  • Baqui Khalily

    (University of Dhaka)

Abstract

Households move strategically to smooth consumption in the event of economic shocks. This paper comprehensively analyzes various coping schemes adopted by households in the event of different types and intensity of economic shocks. We conclusively find that erosive coping is a dominant strategy for households except asset shocks. It is also evident that the higher the total loss suffered the greater is the likelihood of adopting erosive coping schemes for any of the three economic shocks. Contrary to the findings related to asset shocks, the household is high likely to adopt erosive savings, help from relatives in case of economic shocks. In addition to these two methods, households also takes up new loans and mortgaging land when it encounters expenditure shocks. The househols is more prone to adopt multiple strategies in case of income and expenditure shocks.

Suggested Citation

  • Meherun Ahmed & Baqui Khalily, 2016. "Risks, Coping And Roles of Access to Financial Services," Annals of the University of Petrosani, Economics, University of Petrosani, Romania, vol. 16(1), pages 5-30.
    • Handle: RePEc:pet:annals:v:16:y:2016:i:1:p:5-30
    as

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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    coping strategies; economics shocks; microcredit; saving; consumption expenditure; well being;
    All these keywords.

    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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