Coping with shocks in rural Ethiopia
Date
2014
Authors
Yilma, Zelalem
Mebratie, Anagaw
Sparrow, Robert
Abebaw, Degnet
Dekker, Marleen
Alemu, Getnet
Bedi, Arjun
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Frank Cass & Co Ltd
Abstract
Using survey data and event history interviews undertaken in Ethiopia, we investigate which shocks trigger which coping responses and why. Relatively covariate natural and economic shocks trigger reductions in savings and in food consumption, while relatively idiosyncratic health shocks prompt reductions in savings and a reliance on borrowing. Surprisingly, across all shocks, households do not rely on gifts from family and friends, highlighting the need for formal protection systems. We argue that the insensitivity of food consumption to health shocks does not imply insurability but indicates that it is not a viable response to such a shock.
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Journal of Development Studies
Type
Journal article
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2037-12-31
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