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Lasting local impacts of an economywide crisis, Volume 1
Author:Ravallion, Martin; Lokshin, Michael; Country:Indonesia;
Date Stored:2005/02/24Document Date:2005/02/01
Document Type:Policy Research Working PaperSubTopics:Poverty Monitoring & Analysis; Environmental Economics & Policies; Economic Theory & Research; Poverty Assessment; Economic Conditions and Volatility; Inequality; Public Health Promotion
Language:EnglishRegion:East Asia and Pacific
Report Number:WPS3503Collection Title:Policy research working paper series ; no. WPS 3503
Volume No:1  

Summary: The immediate welfare costs of an economywide crisis can be high, but are there also lasting impacts? And are they greater in some geographic areas than others? The authors study Indonesia’s severe financial crisis of 1998. They use 10 national surveys spanning 1993–2002, each covering 200,000 randomly sampled households, to estimate the impacts on mean consumption and the incidence of poverty across each of 260 districts. Counterfactual analyses indicate geographically diverse impacts years after the crisis. Proportionate impacts on the poverty rate were greater in initially better off and less unequal areas. In the aggregate, a large share - possibly the majority - of those Indonesians who were still poor in 2002 would not have been so without the 1998 crisis.

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