The Distributional Impacts of Indonesia's Financial Crises on Household Welfare PDF Download

Author: Jed Friedman
Publisher:
ISBN:
Category :
Languages : en
Pages :

View

Book Description

Author: Jed Friedman
Publisher:
ISBN:
Category : Economics
Languages : en
Pages : 54

View

Book Description
Analyzing the distributional impacts of economic crises is important and, unfortunately, an ever more pressing need. If policymakers are to intervene to help those most adversely impacted, then policymakers need to identify those who have been most harmed and the magnitude of that harm. Furthermore, policy responses to economic crises typically must be timely. In this paper, we develop a simple methodology to fill the order and we've applied our methodology to analyze the impact of the Indonesian economic crisis on household welfare there. Using only pre-crisis household information, we estimate the compensating variation for Indonesian households following the 1997 Asian currency crisis and then explore the results with flexible non-parametric methods. We find that virtually every household was severely impacted, although it was the urban poor that fared the worst. The ability of poor rural households to produce food mitigated the worst consequences of the high inflation. The distributional consequences are the same whether we allow households to substitute towards relatively cheaper goods or not. However the geographic location of the household mattered even within urban or rural areas and household income categories. Additionally, households with young children may have suffered disproportionately adverse effects.

Author: jed friedman and james levinsohn
Publisher:
ISBN:
Category :
Languages : en
Pages : 34

View

Book Description

Author: Martin Ravallion
Publisher: World Bank Publications
ISBN:
Category : Consumption (Economics)
Languages : en
Pages : 35

View

Book Description
"The immediate welfare costs of an economywide crisis can be high, but are there also lasting impacts? And are they greater in some geographic areas than others? Ravallion and Lokshin study Indonesia's severe financial crisis of 1998. They use 10 national surveys spanning 1993--2002, each covering 200,000 randomly sampled households, to estimate the impacts on mean consumption and the incidence of poverty across each of 260 districts. Counterfactual analyses indicate geographically diverse impacts years after the crisis. Proportionate impacts on the poverty rate were greater in initially better off and less unequal areas. In the aggregate, a large share--possibly the majority--of those Indonesians who were still poor in 2002 would not have been so without the 1998 crisis. This paper--a product of the Poverty Team, Development Research Group--is part of a larger effort in the group to assess the social impacts of economywide crises"--Verso cover.

Author: Michael P. Dooley
Publisher: University of Chicago Press
ISBN: 0226155420
Category : Business & Economics
Languages : en
Pages : 456

View

Book Description
The management of financial crises in emerging markets is a vital and high-stakes challenge in an increasingly global economy. For this reason, it's also a highly contentious issue in today's public policy circles. In this book, leading economists-many of whom have also participated in policy debates on these issues-consider how best to reduce the frequency and cost of such crises. The contributions here explore the management process from the beginning of a crisis to the long-term effects of the techniques used to minimize it. The first three chapters focus on the earliest responses and the immediate defense of a currency under attack, exploring whether unnecessary damage to economies can be avoided by adopting the right response within the first few days of a financial crisis. Next, contributors examine the adjustment programs that follow, considering how to design these programs so that they shorten the recovery phase, encourage economic growth, and minimize the probability of future difficulties. Finally, the last four papers analyze the actual effects of adjustment programs, asking whether they accomplish what they are designed to do-and whether, as many critics assert, they impose disproportionate costs on the poorest members of society. Recent high-profile currency crises have proven not only how harmful they can be to neighboring economies and trading partners, but also how important policy responses can be in determining their duration and severity. Economists and policymakers will welcome the insightful evaluations in this important volume, and those of its companion, Sebastian Edwards and Jeffrey A. Frankel's Preventing Currency Crises in Emerging Markets.

Author: Lisa A. Cameron
Publisher:
ISBN:
Category :
Languages : en
Pages : 26

View

Book Description
School attendance in Indonesia dropped slightly after the onset of the Asian crisis but then rebounded to higher-than-pre-crisis levels. Fewer children are now working, although the older children who are working and are not attending school seem to be working longer hours. Children's health status appears to be relatively stable.Cameron examines the Asian crisis's impact on children in 100 Indonesian villages, based on data from four rounds of the 100 Villages survey that was used to examine changes in health status, school attendance rates, and children's participation in the labor force.She finds little evidence that the crisis had a dramatically negative impact on children. School attendance dropped slightly after the onset of the crisis but then rebounded to higher-than-pre-crisis levels. Fewer children are now working, although the older children who are working and are not attending school seem to be working longer hours.Children's health status appears to be relatively stable, although comparisons of indicators of children's health status over time are complicated by changes in the questionnaire used.Cameron also examines ways households reported they were coping with the crisis.This paper - a product of the Poverty Team, Development Research Group - is part of a larger effort in the group to study the welfare impact of the East Asian crisis. The author may be contacted at [email protected].

Author: World Bank
Publisher: World Bank Publications
ISBN: 9780821361818
Category : Business & Economics
Languages : en
Pages : 318

View

Book Description
This publication is a practitioner's guide for analyzing the distributional impact of reforms to trade, monetary and exchange rate policy, utility provision, agricultural markets, land policy and education. These six areas of policy reform are the ones most likely to have an impact on distribution and poverty. Such analysis helps in policy formulation and development and for implementing poverty reduction strategies in developing countries. Each chapter in this volume provides an overview and guidance on the specific issues arising in the analysis of the distributional impacts of policy and institutional reforms in selected sectors.

Author: Christopher B. Barrett
Publisher: University of Chicago Press
ISBN: 022657430X
Category : Business & Economics
Languages : en
Pages : 425

View

Book Description
What circumstances or behaviors turn poverty into a cycle that perpetuates across generations? The answer to this question carries especially important implications for the design and evaluation of policies and projects intended to reduce poverty. Yet a major challenge analysts and policymakers face in understanding poverty traps is the sheer number of mechanisms—not just financial, but also environmental, physical, and psychological—that may contribute to the persistence of poverty all over the world. The research in this volume explores the hypothesis that poverty is self-reinforcing because the equilibrium behaviors of the poor perpetuate low standards of living. Contributions explore the dynamic, complex processes by which households accumulate assets and increase their productivity and earnings potential, as well as the conditions under which some individuals, groups, and economies struggle to escape poverty. Investigating the full range of phenomena that combine to generate poverty traps—gleaned from behavioral, health, and resource economics as well as the sociology, psychology, and environmental literatures—chapters in this volume also present new evidence that highlights both the insights and the limits of a poverty trap lens. The framework introduced in this volume provides a robust platform for studying well-being dynamics in developing economies.

Author: Guido Gustavo Porto
Publisher: World Bank Publications
ISBN:
Category : Argentina
Languages : en
Pages : 41

View

Book Description

Author: Marina Halac
Publisher: World Bank Publications
ISBN:
Category : Financial crises
Languages : en
Pages : 56

View

Book Description
Financial crises affect income distribution by way of different channels. The authors argue that financial transfers are an important channel which has been overlooked by the literature. They study the role of financial transfers by analyzing some of the most severe Latin American crises during the past decades (Chile 1981-83, Mexico 1994-95, Ecuador 1998-2000, Argentina 2001-02, and Uruguay 2002). First, the authors investigate transfers to the financial sector-those from nonparticipants to participants of the financial sector. Second, they explore who receives these financial transfers by identifying the winners and losers within the financial sector. Their analysis suggests that financial transfers during crises are large and expected to increase income inequality.