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Economic Shocks, Wealth, and Welfare

Citation

Frankenberg, Elizabeth; Smith, James P.; & Thomas, Duncan (2003). Economic Shocks, Wealth, and Welfare. Journal of Human Resources, 38(2), 280-321.

Abstract

The immediate effects of the Asian crisis on the well-being of Indonesians are examined using the Indonesia Family Life Survey, an ongoing longitudinal household survey. There is tremendous diversity in the effect of the shock: for some households, it was devastating; for others it brought new opportunities. A wide array of mechanisms was adopted in response to the crisis. Households combined to more fully exploit benefits of scale economies in consumption. Labor supply increased even as real wages collapsed. Households reduced spending on semidurables while maintaining expenditures on foods. Rural households used wealth, particularly gold, to smooth consumption.

URL

http://dx.doi.org/10.2307/1558746

Reference Type

Journal Article

Journal Title

Journal of Human Resources

Author(s)

Frankenberg, Elizabeth
Smith, James P.
Thomas, Duncan

Year Published

2003

Volume Number

38

Issue Number

2

Pages

280-321

Reference ID

10359