Unexpected Expenditures Research Articles

Intangible cost of road traffic injuries: a phenomenological approach

To explore the consequences of road traffic injury (RTI) in terms of health, individual-family life and its implications on the households economies, the experience of 12 injured and 12 relatives...

Income Shocks and Consumption Smoothing Strategies: An Empirical Investigation of Maize Farmer’s Behavior in Kebumen, Central Java, Indonesia

Farmers in most developing countries usually face vulnerability in consumption due to income shocks caused by crop loss, price falls, disaster, sickness and death and unexpected expenditure. They will respond differently to income shocks depending on their asset ownership, labor endowment, access to loan, family assistance, and family structure. We quantitatively analyze the consumption smoothing strategies of maize farmers’ response to income shocks in Kebumen, Central Java-Indonesia. The Ordinary Least Square (OLS) method confirms that selling cattle plays a central role in protecting consumption especially from income shocks such as price falls and crop loss. Farmers that experienced income shocks related to demographic shocks such as sickness and death and experienced expenditure shocks related to custom such as birth, mar- riage and religious event require large effort by combining strategies to smooth their consumption. In this case, farmers are forced to sell their land even though it is a costly alternative. However, widening access to the loan market helps them maintain their consumption. Unfortunately, the hypothesis that the government policies such as cheap rice, cash transfer and health insurance are effective instrument to smooth consumption is not supported by consistent statistical evidences in all models.

Levels of Financial Capability in the UK

This article presents a new way of looking at and measuring financial literacy. Financial education work to date has focused on managing money, yet the survey described here shows that this is the area where levels of capability are highest. At least half of the UK population needs reminding that it is dangerous to live for the day and make no provision for changes in circumstance, unexpected expenditure, or retirement. In addition, with the low levels of financial capability identified by the survey, it is likely that mis-selling of financial products will continue in the UK. The authors conclude with policy priorities for the government.

Compensation Schemes for Resettlers in Indonesian Dam Construction Projects

The performance of previous involuntary resettlement schemes for dam construction projects leaves much to be desired. The question to be asked is whether the present policy of development aid agencies is appropriate for countries where more dams will be built. This study examines the applicability of Japanese “soft technologies” to determine whether the existing policy is really instrumental in mitigating impacts. The study was carried out through analysis on Saguling and Cirata dam construction projects on the island of Java, Indonesia, in which 3,038 and 6,300 families were resettled, respectively. The emphasis of resettlement plans for these dams was on transmigration and aquaculture. The following findings were made: land-for-land policy was not fully met; transmigration schemes did not work as planned; resettlers failed to enjoy the benefits from aquaculture development fully due to the high capital needed; employment by dam construction projects was limited; and insufficient capital and training prevented resettlers from enjoying profits from secondary development. Lessons learned included: some mechanism should have been established for those who changed jobs from agriculture to other sectors; provision of urban land rather than farmland, as has been practised in Japan, should have been considered; and establishment of funds, as practised in Japan, should have been pursued. Such funds may be used for enhancing the infrastructure of the project area to promote secondary development for the purpose of creating new jobs for resettlers. It may also meet unexpected expenditures incurred after completion of a dam. Funds could also be utilized to give construction firms monetary incentives to employ resettlers. The creation of funds may be instrumental in safeguarding job security of resettlers.

An ‘early warning system’ for health needs: surveillance of the quality of clinical services by audit of extra-contractual referrals (ECRs)

Extra-contractual referrals (ECRs) can be a cause of considerable anxiety to purchasing authorities, mainly because of their potential to generate unexpected expenditure. But ECRs can also be used as a tool for monitoring the demand for, and quality of, clinical services. ECRs were studied in the Darlington Health Authority district using a variety of methods including inter-disciplinary meetings, a series of interviews with local GPs, and a questionnaire to general practitioners on 230 consecutive ECRs. The methods and results of the questionnaire study are presented. The commonest reasons for making ECRs included the mistaken belief that a contract existed with the ECR provider, patient dissatisfaction with the local provider, and referral to benefit from shorter waiting lists. ECRs for bone-mass densitometry, orthopaedics, and ear nose and throat services were over-represented. Questionnaire results were validated by comparison with an interview study of all GPs in the district. We conclude that trends in ECRs can be monitored as a convenient ‘early warning system’ to alert purchasing authorities to changes in demand or perceived problems with local provider units. ECR data must be interpreted in the context of further local background information from sources such as GPs and public health physicians. In the case of Darlington, scrutiny of ECRs has led to changes in services and contracts.