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The links between catastrophic health expenditures and multidimensional poverty: An instrumental variable analysis in India
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Autores
Pinilla-Roncancio, Monica
AMAYA LARA, JEANNETTE LILIANA
Cedeño-Ocampo, Gustavo
Rodriguez-Lesmes, Paul
Sepulveda, Carlos E.
Fecha
2022
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Universidad del Rosario
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Abstract
The relationship between multidimensional poverty and catastrophic health expenditures has not been studied in detail, specifically how dependent such a connection is according to the specific context. This study aims to determine whether
households who face catastrophic health expenditures in India have a higher probability of living in multidimensional poverty, given their socio-economic background
and the protection provided by access to health insurance. We explore such a relationship in the case of India, exploiting variation in the development level of its regions
and the socio-economic conditions faced conditional on caste. Using data from the Indian Human Development Survey, we exploit longitudinal variation at the household level using a linear probability model. We complement this analysis with an
instrumental variable analysis, using a health shock to analyse the causal relationship
between facing a shock which increases catastrophic health expenditures and living in
multidimensional poverty. The results revealed that households facing catastrophic
health expenditures in India have a higher probability of being multidimensionally
poor. Such a relationship was only partially mitigated if the household was protected
by health insurance, and there were almost no differences according to the caste of the
household. Moreover, the relationship was stronger outside South India, especially
on the role of health insurance. and place of residence. In the case of the instrumental variable analysis, the results show the same pattern as in the longitudinal model;
however, the results are not significant.
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Keywords
Catastrophic Health Expenditures , Multidimensional Poverty , India , Instrumental Variables