Mortality Shocks and Survivors’ Consumption Growth

26 Pages Posted: 22 Feb 2010

See all articles by Michael Grimm

Michael Grimm

Erasmus University Rotterdam; University of Passau; IZA; DIW Berlin

Date Written: 2009-08-18

Abstract

In contrast to health shocks, mortality shocks do not only induce direct costs such as medical and funeral expenses and possibly income loss, but also reduce the number of consumption units in the household. Using data from Indonesia, it is shown that the economic costs related to the death of children and older persons seem to be fully compensated for by the decrease in consumption units. In contrast, when prime-age adults die, survivors face additional costs and, in consequence, use coping strategies. These strategies seem to be quite effective, although households may face higher long-term vulnerability.

Suggested Citation

Grimm, Michael, Mortality Shocks and Survivors’ Consumption Growth (2009-08-18). Oxford Bulletin of Economics and Statistics, Vol. 72, Issue 2, pp. 146-171, April 2010. Available at SSRN: https://ssrn.com/abstract=1555273 or http://dx.doi.org/10.1111/j.1468-0084.2009.00566.x

Michael Grimm (Contact Author)

Erasmus University Rotterdam ( email )

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University of Passau ( email )

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IZA ( email )

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DIW Berlin ( email )

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