Education. Medical care. Figure. Proportion of the expenditures to total living expenditure of Chinese rural households(%). To Be and To Be Better: Financing Medical Care and Education in Rural China Huashu Wang, Henk A.J. Moll, and Shenggen Fan. Problem statement and Objective
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Figure. Proportion of the expenditures to total living expenditure of Chinese rural households(%)
To Be and To Be Better: Financing Medical Care and Education in Rural China
Huashu Wang, Henk A.J. Moll, and Shenggen Fan
Problem statement and Objective
Financing predictable and unexpected expenditures is a major concern of rural households with irregular incomes and related with financial shocks resulting in their decline into poverty. In this study we compare the actual financing of Education and Medical care by rural households to gain insight into their capability to invest and deal with shocks.
Predictable (education) expenditures are financed internally through savings whereas unexpected (medical) expenditures are financed externally through loans
Incomes: low and unpredictable
Financing education mainly through savings; financing medical care mainly through informal loans, some savings and selling assets.(Hypothesis accepted)
Formal loans play no role, even for the richest group of households.
Government and donor support only for primary education. Substantial expenditures for secondary education and medical care may endanger livelihood rural households
Investing in education
In need of medical care