Sources of Financial Assistance for Households Suffering an Adult Death in Kagera, Tanzania
The AIDS crisis in Africa and elsewhere compels us to design appropriate assistance policies for households experience a death. Policies should take into account and strengthen existing household coping strategies, rather than duplicate or undermin...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2000/12/828361/sources-financial-assistance-households-suffering-adult-death-kagera-tanzania http://hdl.handle.net/10986/19741 |
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okr-10986-197412021-04-23T14:03:44Z Sources of Financial Assistance for Households Suffering an Adult Death in Kagera, Tanzania Lundberg, Mattias Over, Mead Mujinja, Phare CAPITA EXPENDITURE CLINICS COMMUNITY LEVEL COUNTERFACTUAL CROWDING OUT DEVELOPMENT RESEARCH GROUP DROUGHT ECONOMIC GROWTH EPIDEMICS EQUALITY HOUSEHOLD INCOME HOUSEHOLD SURVEY HOUSEHOLD-LEVEL HOUSEHOLDS IDIOSYNCRATIC SHOCKS INCOME INFORMAL INSURANCE INFORMAL TRANSFERS INSURANCE INTERVENTION POOR POOR HOUSEHOLDS PRIVATE TRANSFERS RURAL AREAS TRAFFIC TRANSITION ECONOMIES UNEMPLOYMENT VILLAGES The AIDS crisis in Africa and elsewhere compels us to design appropriate assistance policies for households experience a death. Policies should take into account and strengthen existing household coping strategies, rather than duplicate or undermine them. The authors investigate the nature of coping mechanisms among a sample of households in Kagera, Tanzania in 1991-1994. They estimate the magnitude and timing of receipts of private transfers, credits, and public assistance by households with different characteristics. Their empirical strategy addresses three common methodological difficulties in estimating the impact of adult death: selection bias, endogeneity, and unobserved heterogeneity. The authors find that less-poor households (those with more physical and human capital) benefit from larger receipts of private assistance than poor households. Resource-abundant households are wealthy in social assets as well as physical assets. Poor households, on the other hand, rely relatively more on loans than private transfers, for up to a year after a death. This suggests that credit acts as insurance for households where informal interhousehold assistance contracts are not enforceable. A donor in Kagera can be sure that assistance to a wealthy household may not be able to return the favor. Assistance to the poor is more likely to come with more formal arrangements for repayment. Formal-sector assistance is targeted toward the poor immediately following the death. The impact of adult deaths on households may be mitigated either ex ante, through programs that minimize poverty and vulnerability, or ex post, by assistance targeted to the poorest and most vulnerable households. In addition, to the extent to which micro-credit programs improve access and lower the total costs of borrowing, they may not only stimulate growth and investment but also help resource-poor households overcome the impact of an adult death in the areas hard-hit by the AIDS epidemic. 2014-08-26T21:59:22Z 2014-08-26T21:59:22Z 2000-12 http://documents.worldbank.org/curated/en/2000/12/828361/sources-financial-assistance-households-suffering-adult-death-kagera-tanzania http://hdl.handle.net/10986/19741 English en_US Policy Research Working Paper;No. 2508 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Africa Tanzania |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
CAPITA EXPENDITURE CLINICS COMMUNITY LEVEL COUNTERFACTUAL CROWDING OUT DEVELOPMENT RESEARCH GROUP DROUGHT ECONOMIC GROWTH EPIDEMICS EQUALITY HOUSEHOLD INCOME HOUSEHOLD SURVEY HOUSEHOLD-LEVEL HOUSEHOLDS IDIOSYNCRATIC SHOCKS INCOME INFORMAL INSURANCE INFORMAL TRANSFERS INSURANCE INTERVENTION POOR POOR HOUSEHOLDS PRIVATE TRANSFERS RURAL AREAS TRAFFIC TRANSITION ECONOMIES UNEMPLOYMENT VILLAGES |
| spellingShingle |
CAPITA EXPENDITURE CLINICS COMMUNITY LEVEL COUNTERFACTUAL CROWDING OUT DEVELOPMENT RESEARCH GROUP DROUGHT ECONOMIC GROWTH EPIDEMICS EQUALITY HOUSEHOLD INCOME HOUSEHOLD SURVEY HOUSEHOLD-LEVEL HOUSEHOLDS IDIOSYNCRATIC SHOCKS INCOME INFORMAL INSURANCE INFORMAL TRANSFERS INSURANCE INTERVENTION POOR POOR HOUSEHOLDS PRIVATE TRANSFERS RURAL AREAS TRAFFIC TRANSITION ECONOMIES UNEMPLOYMENT VILLAGES Lundberg, Mattias Over, Mead Mujinja, Phare Sources of Financial Assistance for Households Suffering an Adult Death in Kagera, Tanzania |
| geographic_facet |
Africa Tanzania |
| relation |
Policy Research Working Paper;No. 2508 |
| description |
The AIDS crisis in Africa and elsewhere
compels us to design appropriate assistance policies for
households experience a death. Policies should take into
account and strengthen existing household coping strategies,
rather than duplicate or undermine them. The authors
investigate the nature of coping mechanisms among a sample
of households in Kagera, Tanzania in 1991-1994. They
estimate the magnitude and timing of receipts of private
transfers, credits, and public assistance by households with
different characteristics. Their empirical strategy
addresses three common methodological difficulties in
estimating the impact of adult death: selection bias,
endogeneity, and unobserved heterogeneity. The authors find
that less-poor households (those with more physical and
human capital) benefit from larger receipts of private
assistance than poor households. Resource-abundant
households are wealthy in social assets as well as physical
assets. Poor households, on the other hand, rely relatively
more on loans than private transfers, for up to a year after
a death. This suggests that credit acts as insurance for
households where informal interhousehold assistance
contracts are not enforceable. A donor in Kagera can be sure
that assistance to a wealthy household may not be able to
return the favor. Assistance to the poor is more likely to
come with more formal arrangements for repayment.
Formal-sector assistance is targeted toward the poor
immediately following the death. The impact of adult deaths
on households may be mitigated either ex ante, through
programs that minimize poverty and vulnerability, or ex
post, by assistance targeted to the poorest and most
vulnerable households. In addition, to the extent to which
micro-credit programs improve access and lower the total
costs of borrowing, they may not only stimulate growth and
investment but also help resource-poor households overcome
the impact of an adult death in the areas hard-hit by the
AIDS epidemic. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Lundberg, Mattias Over, Mead Mujinja, Phare |
| author_facet |
Lundberg, Mattias Over, Mead Mujinja, Phare |
| author_sort |
Lundberg, Mattias |
| title |
Sources of Financial Assistance for Households Suffering an Adult Death in Kagera, Tanzania |
| title_short |
Sources of Financial Assistance for Households Suffering an Adult Death in Kagera, Tanzania |
| title_full |
Sources of Financial Assistance for Households Suffering an Adult Death in Kagera, Tanzania |
| title_fullStr |
Sources of Financial Assistance for Households Suffering an Adult Death in Kagera, Tanzania |
| title_full_unstemmed |
Sources of Financial Assistance for Households Suffering an Adult Death in Kagera, Tanzania |
| title_sort |
sources of financial assistance for households suffering an adult death in kagera, tanzania |
| publisher |
World Bank, Washington, DC |
| publishDate |
2014 |
| url |
http://documents.worldbank.org/curated/en/2000/12/828361/sources-financial-assistance-households-suffering-adult-death-kagera-tanzania http://hdl.handle.net/10986/19741 |
| _version_ |
1764440511054086144 |