Unbiased Analysis of Today's Healthcare Issues

Poverty and Health in Developing Countries

Written By: Jason Shafrin - Jun• 06•08

Abhijit Banerjee and Esther Duflo find that for rural households, the probability that the mother is alive is 36 percentage points higher if the family has a daily per capita expenditures (DPCE) of $6 to $10 versus a DCPE of $1 to $2.  Using a panel data set specification, the authors also find that adults over 50 living on less than $2 a day are at least three times as likely to die over the next five to seven years than those living on $6 to $10 a day.

Are people poor because they are sick or do they get sick because they are poor?  The direction of causality is unknown.

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