Determinants of Health Expenditure during Extreme Climate Events: An Ex-post Analysis of Households in Rural Odisha of India

Abstract

This study is an ex-post analysis of household health expenditure for rural India in the presence of climate shock. Primary data from Odisha state, located on the east coast of India, are collected for empirical analysis. We have also used information from focus group discussions at the village level and the primary data. Further, an adaptive response measure is created to understand household spending behaviour on health better. Econometric techniques such as regression and propensity score matching explain sample households’ ex-post-health spending behaviour. Our findings indicate that mitigation and adaptation strategies must be heterogeneous among villages classified as near or far from the coast. Social status matters in the health spending behaviour of households. Hence, a particular focus must be given to socially backward castes or classes in designing health policies and information at the state and national levels. JEL Codes: D31, I18, Q54, Q56