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dc.titleResearch Insights: How Do Economic Networks Contribute to the Spread and Mitigation of Health Shocks?
dc.contributor.authorKinnan, Cynthia
dc.contributor.authorSamphantharak, Krislert
dc.contributor.authorTownsend, Robert
dc.contributor.authorVera-Cossio, Diego A.
dc.contributor.orgunitDepartment of Research and Chief Economist
dc.coverageLatin America and the Caribbean
dc.date.available2022-08-19T00:08:00
dc.date.issue2022-08-19T00:08:00
dc.description.abstractSmall firm owners facing idiosyncratic shocks adjust production by cutting spending and reducing their demand for external workers. These shocks propagate to other local households with whom shocked firms trade inputs and labor through local supply-chain and labor market networks, leading to declines in transactions, income, and consumption. The total indirect effects are larger than the direct effects: a US$1 decline in a shocked households business spending reduces aggregate consumption by US$1.7. Both the direct and indirect effects are mitigated by incoming transfers to shocked households with access to risk-sharing networks. Therefore, having access to health insurance protects both directly affected households as well as those who conduct transactions with them.
dc.format.extent4
dc.identifier.doihttp://dx.doi.org/10.18235/0004420
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/Research-Insights-How-Do-Economic-Networks-Contribute-to-the-Spread-and-Mitigation-of-Health-Shocks.pdf
dc.identifier.urlhttps://publications.iadb.org/publications/spanish/document/Perspectivas-de-investigacion-Como-contribuyen-las-redes-economicas-a-la-propagacion-y-mitigacion-de-los-efectos-economicos-nocivos-causados-por-enfermedades.pdf
dc.language.isoen
dc.publisherInter-American Development Bank
dc.subjectHealth
dc.subjectEntrepreneurship
dc.subjectLabor Market
dc.subjectSupply Chain
dc.subjectSmall Business
dc.subjectLabor Force
dc.subjectFirms Dynamics
dc.subjectDisease
dc.subjectLabor
dc.subjectEconomy
dc.subjectHealth Insurance
dc.subjectInformal Firm
dc.subject.jelcodeD13 - Household Production and Intrahousehold Allocation
dc.subject.jelcodeD22 - Firm Behavior: Empirical Analysis
dc.subject.jelcodeI15 - Health and Economic Development
dc.subject.jelcodeO10 - Economic Development: General
dc.subject.jelcodeQ12 - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
dc.subject.keywordsPropagation;Firms;labor market
dc.typeCatalogs and Brochures
idb.identifier.pubnumberIDB-CB-00679
idb.operationBK-C1102
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