CAUSAL EFFECTS OF HEALTH SHOCKS ON CONSUMPTION AND DEBT: QUASI-EXPERIMENTAL EVIDENCE FROM BUS ACCIDENT INJURIES

• 成果类型: Article
• 署名作者: Mohanan, Manoj
• 署名单位: Duke University
• 刊物名称: REVIEW OF ECONOMICS AND STATISTICS
• ISSN/ISSBN: 0034-6535
• DOI: 10.1162/REST_a_00262
• 发表日期: 2013-05
• 页码: 673-681
• 关键词: insurance; income; RISK; eradication; expenditure; MARKET

摘要

Endogeneity between health and wealth presents a challenge for estimating causal effects of health shocks. Using a quasi-experimental design, comprising exogenous shocks sustained as bus accident injuries in India, with controls drawn from travelers on the same bus routes one year later, I present new evidence of causal effects on consumption and debt. Using primary household survey data, I find that households faced with shock-related expenditures are able to smooth consumption on food, housing, and festivals, with small reductions in educational spending. Debt was the principal mitigating mechanism households used, leading to significantly larger levels of indebtedness.