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Health Care Expenditure and Farm Income Loss: Evidence from Natural Disasters

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  • Hung-Hao Chang
  • Chad Meyerhoefer

Abstract

Farmers have higher rates of disability and illness than the general population and more volatile incomes due to frequent crop and livestock losses from extreme weather events. This raises concerns that sudden, weather-related drops in farm income could reduce access to health care for an already vulnerable population. We estimate the sensitivity of health care use to the loss in farm income brought about by natural disasters in Taiwan. To account for endogenous exposure to disaster risks, we estimate an instrumental variables model and find that farm income elasticities of demand for outpatient care and prescriptions range from 0.11 to 0.32. Reductions in health care use may be due, in part, to changes in time allocations within farm households.

Suggested Citation

  • Hung-Hao Chang & Chad Meyerhoefer, 2022. "Health Care Expenditure and Farm Income Loss: Evidence from Natural Disasters," NBER Working Papers 29898, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:29898
    Note: DEV EH
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    Cited by:

    1. Syukriyah, Daim & Himaz, Rozana, 2024. "Short and medium-run effects of the Indian Ocean tsunami on health costs in Indonesia," World Development, Elsevier, vol. 180(C).

    More about this item

    JEL classification:

    • I1 - Health, Education, and Welfare - - Health
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

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