Data on Health Economics Reported by Researchers at Pennsylvania State University (Penn State) (Health Shocks and Households’ Vulnerability To Poverty In Nigeria: a Quasi-experimental Analysis): Economics – Health Economics

2025 AUG 20 (NewsRx) -- By a News Reporter-Staff News Editor at Insurance Daily News -- New research on Economics - Health Economics is the subject of a report. According to news reporting from University Park, Pennsylvania, by NewsRx journalists, research stated, “Health shocks are a critical driver of poverty in low- and middle-income countries (LMICs). This study investigates the impact of health shocks on household poverty risk in Nigeria and evaluates the protective capacity of existing health insurance mechanisms, using data from the 2023/2024 General Household Survey (n = 4,779 households).”

The news correspondents obtained a quote from the research from Pennsylvania State University (Penn State), “We first estimated household vulnerability using Chaudhuri’s (2003) Vulnerability as Expected Poverty framework, addressing heteroskedasticity in consumption estimation via feasible generalized least squares. We then modeled the probability of household vulnerability following health shocks using probit regression. Finally, we implemented propensity score matching to isolate the effect of health shocks on households’ vulnerability. Our results indicate that 56.1% and 59.2% of Nigerian households are vulnerable to poverty, using the international ($2.15/day) and national ($2.48/day) poverty lines, respectively. Vulnerable households are more prevalent in northern regions, rural areas, larger households, and poorer households. We found evidence that, based on the international poverty line, health shocks significantly increased the probability of household vulnerability (ATT = 0.053, SE = 0.023) compared to matched households without health shocks, with a slightly higher impact (ATT = 0.054, SE = 0.023) if using the national poverty line. Household size, dependency ratio, household head’s education and employment status, and residence were significant predictors of vulnerability. Despite their potential, health insurance, covering only 2.2% of households, did not offer adequate protection against health shocks. This study provides robust evidence that health shocks increase households’ vulnerability to poverty and perpetuate existing poverty.”

According to the news reporters, the research concluded: “Financial protection measures need to be considered in broader poverty reduction policies.”

For more information on this research see: Health Shocks and Households’ Vulnerability To Poverty In Nigeria: a Quasi-experimental Analysis. Health Economics Review, 2025;15(1). Health Economics Review can be contacted at: Bmc, Campus, 4 Crinan St, London N1 9XW, England. (Springer - www.springer.com; Health Economics Review - http://www.springerlink.com/content/2191-1991/)

Our news journalists report that additional information may be obtained by contacting Paul Eze, Pennsylvania State University (Penn State), Dept. of Health Policy and Administration, 504A Donald Ford Bldg, University Park, PA 16802, United States.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1186/s13561-025-00660-5. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.

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