Economic shocks, wealth, and welfare

Published

Journal Article

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.

Duke Authors

Cited Authors

  • Frankenberg, E; Smith, JP; Thomas, D

Published Date

  • March 1, 2003

Published In

Volume / Issue

  • 38 / 2

Start / End Page

  • 280 - 321

International Standard Serial Number (ISSN)

  • 0022-166X

Citation Source

  • Scopus