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The World Bank Economic Review Advance Access originally published online on September 21, 2005
The World Bank Economic Review 2005 19(2):203-223; doi:10.1093/wber/lhi011
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© The Author 2005. Published by Oxford University Press on behalf of the International Bank for Reconstruction and Development / THE WORLD BANK. All rights reserved. For permissions, please e-mail: journals.permissions@oupjournals.org.

Child Health and Economic Crisis in Peru

Christina Paxson

Christina Paxson is professor of economics and public affairs at Princeton University; her email address is cpaxson{at}princeton.edu.

Norbert Schady

Norbert Schady is senior economist in the Development Research Group (Public Services Team) at the World Bank; his email address is nschady{at}worldbank.org.

The effect of macroeconomic crises on child health is a topic of great policy importance. This article analyzes the impact of a profound crisis in Peru on infant mortality. It finds an increase of about 2.5 percentage points in the infant mortality rate for children born during the crisis of the late 1980s, which implies that about 17,000 more children died than would have in the absence of the crisis. Accounting for the precise source of the increase in infant mortality is difficult, but it appears that the collapse in public and private expenditures on health played an important role.


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