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Do microfinance programs help families insure consumption against illness?

✍ Scribed by Paul Gertler; David I. Levine; Enrico Moretti


Book ID
102232000
Publisher
John Wiley and Sons
Year
2009
Tongue
English
Weight
161 KB
Volume
18
Category
Article
ISSN
1057-9230

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✦ Synopsis


Abstract

Families in developing countries face enormous financial risks from major illness both in terms of the cost of medical care and the loss in income associated with reduced labor supply and productivity. We test whether access to microfinancial savings and lending institutions helps Indonesian families smooth consumption after declines in adult health. In general, results support the importance of these institutions in helping families to self‐insure consumption against health shocks. Copyright © 2008 John Wiley & Sons, Ltd.