Do shocks have a persistent impact on consumption? The case of rural Malawi

Simon Davies

Research output: Contribution to journalArticle

3 Citations (Scopus)

Abstract

This article uses rural Malawian data to study the long-run impact of two household shocks (sickness and death) and two community shocks (floods and drought) on household per capita consumption. Little work has been done in this area, but understanding these shocks and the extent to which households can insulate themselves against these shocks is important in understanding how households in developing countries remain in a poverty trap. Results indicate that drought and sickness have negative short-term effects on consumption level, but do not have significant long-run effects. This suggests that rural Malawian households are able to shield themselves from the persistent negative impacts of these shocks on consumption levels but are unable to self-insure against the short-run impact.
Original languageEnglish
Pages (from-to)75-79
Number of pages5
JournalProgress in Development Studies
Volume10
Issue number1
DOIs
Publication statusPublished - Jan 2010

Fingerprint

Malawi
drought
illness
natural disaster
developing country
poverty
death
shield
developing world
community
consumption
household
effect

Keywords

  • consumption
  • Africa
  • Malawi
  • drought
  • health shocks

Cite this

Do shocks have a persistent impact on consumption? The case of rural Malawi. / Davies, Simon.

In: Progress in Development Studies, Vol. 10, No. 1, 01.2010, p. 75-79.

Research output: Contribution to journalArticle

@article{3201c55b49844902a105b05a73e2e0fc,
title = "Do shocks have a persistent impact on consumption? The case of rural Malawi",
abstract = "This article uses rural Malawian data to study the long-run impact of two household shocks (sickness and death) and two community shocks (floods and drought) on household per capita consumption. Little work has been done in this area, but understanding these shocks and the extent to which households can insulate themselves against these shocks is important in understanding how households in developing countries remain in a poverty trap. Results indicate that drought and sickness have negative short-term effects on consumption level, but do not have significant long-run effects. This suggests that rural Malawian households are able to shield themselves from the persistent negative impacts of these shocks on consumption levels but are unable to self-insure against the short-run impact.",
keywords = "consumption, Africa, Malawi, drought, health shocks",
author = "Simon Davies",
year = "2010",
month = "1",
doi = "10.1177/146499340901000105",
language = "English",
volume = "10",
pages = "75--79",
journal = "Progress in Development Studies",
issn = "1464-9934",
publisher = "Sage Publications",
number = "1",

}

TY - JOUR

T1 - Do shocks have a persistent impact on consumption? The case of rural Malawi

AU - Davies, Simon

PY - 2010/1

Y1 - 2010/1

N2 - This article uses rural Malawian data to study the long-run impact of two household shocks (sickness and death) and two community shocks (floods and drought) on household per capita consumption. Little work has been done in this area, but understanding these shocks and the extent to which households can insulate themselves against these shocks is important in understanding how households in developing countries remain in a poverty trap. Results indicate that drought and sickness have negative short-term effects on consumption level, but do not have significant long-run effects. This suggests that rural Malawian households are able to shield themselves from the persistent negative impacts of these shocks on consumption levels but are unable to self-insure against the short-run impact.

AB - This article uses rural Malawian data to study the long-run impact of two household shocks (sickness and death) and two community shocks (floods and drought) on household per capita consumption. Little work has been done in this area, but understanding these shocks and the extent to which households can insulate themselves against these shocks is important in understanding how households in developing countries remain in a poverty trap. Results indicate that drought and sickness have negative short-term effects on consumption level, but do not have significant long-run effects. This suggests that rural Malawian households are able to shield themselves from the persistent negative impacts of these shocks on consumption levels but are unable to self-insure against the short-run impact.

KW - consumption

KW - Africa

KW - Malawi

KW - drought

KW - health shocks

UR - http://www.scopus.com/inward/record.url?scp=74349124322&partnerID=8YFLogxK

UR - http://dx.doi.org/10.1177/146499340901000105

U2 - 10.1177/146499340901000105

DO - 10.1177/146499340901000105

M3 - Article

VL - 10

SP - 75

EP - 79

JO - Progress in Development Studies

JF - Progress in Development Studies

SN - 1464-9934

IS - 1

ER -