Impact of health shocks on household consumption structure

Introduction In the aftermath of the pandemic, the impact of health shocks on household expenditure patterns has become a critical area of focus due to the heightened uncertainty surrounding consumers’ expectations. Household medical expenditures have emerged as a key factor in the evolving consumption structure. Method This research developed a practical framework to assess the influence of health shocks on family spending patterns, focusing on health shortfalls. Health emergencies were measured through randomized medical spending. Data was sourced from the 2010-2018 Wave 5 Statistical Report of the China Family Panel Studies (CFPS), which included a total of 25,809 participants. Results The findings revealed that health shocks significantly increased the proportion of household spending on medical expenses. Concurrently, sub-expenditures such as food and education were reduced to varying degrees as households adjusted their consumption patterns to mitigate the impact of health shocks. T