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We examine shocks experienced by rural Nepali households during the COVID‐19 pandemic. Households primarily experienced income and price shocks during a government‐imposed lockdown. During this time, households managed to effectively protect consumption, and mostly relied on credit (26%), asset sales (10%) and savings (8%). Debt levels nearly doubled, with limited changes to savings. We then leverage a long‐term randomized control trial (RCT) to assess whether beneficiaries of a livestock livelihood program are more resilient. Program beneficiaries are 6 percentage points less likely to take out new loans.
Applied Economic Perspective and Policy – Wiley
Published: Dec 1, 2023
Keywords: asset smoothing; consumption smoothing; coping; COVID‐19; credit; savings; shocks
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