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Select Committee on International Development Minutes of Evidence


Annex 1

ECONOMIC EFFECTS OF FATAL ILLNESS ON THE HOUSEHOLD: TYPE AND TIMING OF IMPACT


Timing of impact
Type of impactBefore illness During illnessImmediate effect of death   Long-term effect of death  

Effect on production and earnings a. Organisation of economic activitya. Reduced productivity of ill adult a. Lost output of deceaseda. Lost output of deceased
b. Residential location b. Reallocation of labour b. Reallocation of land and labour
Effect on investment and consumption a. Insurancea. Medical cost of treatment a. Funeral costsa. Changes in type and quantity of investment and consumption
b. Medical costs of prevention b. Dissavingb. Transfers
c. Precautionary savings c. Changes in consumption and investment c. Legal fees
d. Transfer to other households
Effect on household health and consumption a. Extended familya. Reduced allocation of labour to health maintaining activities a. Loss of deceaseda. Poor health of surviving household members
b. Fertility b. Dissolution or reconstitution of household
Psychic costs a. Disutility of ill individuala. Disutility to individual
b. Grief of loved ones


  Source:  Richard G A Feachem, Tord Kjellstrom, Christopher J L Murray, Mead Over, Margaret A Phillips


 
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Prepared 29 March 2001