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

Masha F. Somi, James R. G. Butler, Farshid Vahid, Joseph Njau () and Salim Abdulla
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Masha F. Somi: Australian Centre for Economic Research on Health, Australian National University, Australia, Postal: 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, Postal: Australian Centre for Economic Research on Health, Australian National University, Australia
Salim Abdulla: Ifakara Health Research and Development Centre, Dar es Salaam, Tanzania, Postal: Ifakara Health Research and Development Centre, Dar es Salaam, Tanzania

Journal of International Development, 2009, vol. 21, issue 2, 200-211

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.

Date: 2009
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Persistent link: https://EconPapers.repec.org/RePEc:wly:jintdv:v:21:y:2009:i:2:p:200-211

DOI: 10.1002/jid.1555

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