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Household responses to health risks and shocks: A study from rural Tanzania raises some methodological issues

Author

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  • Masha F. Somi

    (Australian Centre for Economic Research on Health, Australian National University, Australia)

  • James R. G. Butler

    (Australian Centre for Economic Research on Health, Australian National University, Australia)

  • Farshid Vahid

    (School of Economics, Australian National University, Australia)

  • Joseph D. Njau

    (Ifakara Health Research and Development Centre, Dar es Salaam, Tanzania)

  • Salim Abdulla

    (Ifakara Health Research and Development Centre, Dar es Salaam, Tanzania)

Abstract

The impact of a health shock (malaria) on household consumption patterns is investigated using a system of demand equations. After controlling for the overall levels of total expenditure by a household, the presence of a self-reported malarious individual in a household reduces consumption of luxury items and increases consumption of health care and products. Our results are compatible with the hypothesis that households behave strategically when coping with an illness related shock so as to minimise its impact on expenditure on necessities: if households need to re-allocate funds to health and health care products, they reduce consumption of luxury items. Copyright © 2009 John Wiley & Sons, Ltd.

Suggested Citation

  • Masha F. Somi & James R. G. Butler & Farshid Vahid & Joseph D. Njau & Salim Abdulla, 2009. "Household responses to health risks and shocks: A study from rural Tanzania raises some methodological issues," Journal of International Development, John Wiley & Sons, Ltd., vol. 21(2), pages 200-211.
    • Handle: RePEc:wly:jintdv:v:21:y:2009:i:2:p:200-211
    DOI: 10.1002/jid.1555
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    References listed on IDEAS

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    Cited by:

    1. Séverin Aimé Blanchard Ouadika, 2020. "Health shocks and vulnerability to poverty in Congo," Palgrave Communications, Palgrave Macmillan, vol. 7(1), pages 1-8, December.
    2. Kumara, Ajantha Sisira & Samaratunge, Ramanie, 2017. "Impact of ill-health on household consumption in Sri Lanka: Evidence from household survey data," Social Science & Medicine, Elsevier, vol. 195(C), pages 68-76.
    3. sowmya, 2015. "Health Shocks and Short-Term Consumption GrowthAuthor-Name: Sowmya Dhanaraj," Working Papers 2015-112, Madras School of Economics,Chennai,India.
    4. Subhalaxmi Mohapatra, 2022. "Health Expenditures, Health Infrastructure and Health Status in SAARC Countries: A Panel Data Analysis," Vikalpa: The Journal for Decision Makers, , vol. 47(3), pages 205-216, September.
    5. Jacob Novignon & Solomon Olakojo & Justice Nonvignon, 2012. "The effects of public and private health care expenditure on health status in sub-Saharan Africa: new evidence from panel data analysis," Health Economics Review, Springer, vol. 2(1), pages 1-8, December.
    6. Esso-Hanam Atake, 2018. "Health shocks in Sub-Saharan Africa: are the poor and uninsured households more vulnerable?," Health Economics Review, Springer, vol. 8(1), pages 1-13, December.
    7. Xiaoyu Wang & Chunan Wang, 2020. "How Does Health Status Affect Marginal Utility of Consumption? Evidence from China," IJERPH, MDPI, vol. 17(7), pages 1-20, March.
    8. Anushree S. Panikkassery, 2020. "Impact of Out of Pocket Health Expenditure on Consumption Pattern of Below Poverty Line Households in India," Millennial Asia, , vol. 11(1), pages 27-53, April.
    9. Pheeha Morudu & Umakrishnan Kollamparambil, 2020. "Health shocks, medical insurance and household vulnerability: Evidence from South Africa," PLOS ONE, Public Library of Science, vol. 15(2), pages 1-17, February.
    10. Rama Pal, 2013. "Out-of-Pocket Health Expenditure: Impact on the Consumption of Indian Households," Oxford Development Studies, Taylor & Francis Journals, vol. 41(2), pages 258-279, June.
    11. Manoj K. Pandey, 2013. "Elderly's Health Shocks and Household's Ex-ante Poverty in India," ASARC Working Papers 2013-01, The Australian National University, Australia South Asia Research Centre.
    12. Rolle Ahuru Remi & Osaze Daniel & Henry Akpojubaro Efegbere, 2020. "What Role Does Health Play in Enhancing Labour Productivity in Nigeria?," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 6(2), pages 102-111, June.
    13. Zhaohua Zhang & Yuxi Luo & Derrick Robinson, 2018. "Reducing Food Poverty and Vulnerability among the Rural Elderly with Chronic Diseases: The Role of the New Rural Pension Scheme in China," IJERPH, MDPI, vol. 15(6), pages 1-20, June.
    14. Subhalaxmi Mohapatra, 2017. "Health inequity and health outcome: a causal linkage study of low and middle income countries," Quality & Quantity: International Journal of Methodology, Springer, vol. 51(6), pages 2475-2488, November.
    15. Taha Zaghdoudi & Abdelaziz Hakimi, 2017. "Does external debt- poverty relationship confirm the debtoverhang hypothesis for developing counties?," Economics Bulletin, AccessEcon, vol. 37(2), pages 653-665.
    16. Sophie Mitra & Michael Palmer & Daniel Mont & Nora Groce, 2016. "Can Households Cope with Health Shocks in Vietnam?," Health Economics, John Wiley & Sons, Ltd., vol. 25(7), pages 888-907, July.
    17. Hilaire Gbodja Houeninvo & Venant Cossi Celestin Quenum & Melain Modeste Senou, 2023. "Out- Of- Pocket health expenditure and household consumption patterns in Benin: Is there a crowding out effect?," Health Economics Review, Springer, vol. 13(1), pages 1-20, December.

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