The World Bank
Institutional Affiliation: The World Bank
Information about this author at RePEc
NBER Working Papers and Publications
|January 2003||Impacts of the Indonesian Economic Crisis.Price Changes and the Poor|
with James A. Levinsohn, Steven T. Berry
in Managing Currency Crises in Emerging Markets, Michael P. Dooley and Jeffrey A. Frankel, editors
|October 2001||The Distributional Impacts of Indonesia's Financial Crisis on Household Welfare: A "Rapid Response" Methodology|
with James Levinsohn: w8564
Analyzing the distributional impacts of economic crises is important and, unfortunately, an ever more pressing need. If policymakers are to intervene to help those most adversely impacted, then policymakers need to identify those who have been most harmed and the magnitude of that harm. Furthermore, policy responses to economic crises typically must be timely. In this paper, we develop a simple methodology to fill the order and we've applied our methodology to analyze the impact of the Indonesian economic crisis on household welfare there. Using only pre-crisis household information, we estimate the compensating variation for Indonesian households following the 1997 Asian currency crisis and then explore the results with flexible non-parametric methods. We find that virtually every househo...
Published: Jed Friedman & James Levinsohn, 2002. "The Distributional Impacts of Indonesia's Financial Crisis on Household Welfare: A "Rapid Response" Methodology," World Bank Economic Review, Oxford University Press, vol. 16(3), pages 397-423, December. citation courtesy of
|June 1999||Impacts of the Indonesian Economic Crisis: Price Changes and the Poor|
with James Levinsohn, Steven Berry: w7194
The recent financial crisis in Indonesia has resulted in dramatic price increases. Using very recent data, we investigate whether these price increases have impacted the cost-of-living of poor households in a disproportionately harsh way. We find that the poor have indeed been hit hardest. Just how hard the poor have been hit, though, depends crucially on where the household lives, whether the household is in a rural or urban area, and just how the cost-of-living index is computed. What is clear is that the notion that the very poor are so poor as to be insulated from international shocks is simply wrong. Rather, in the Indonesian case, the very poor appear the most vulnerable.