| Though social spending facilitates risk‐pooling in the impoverished regions, too many resources devoted to social occasions may impose negative externalities and hinder efforts to alleviate poverty for households living close to subsistence. Conducting three waves census‐type panel survey in rural western China with well‐defined reference groups and detailed information on social occasions, gift exchanges, nutrients intake and health outcomes, we find that the squeeze effect originated from lavish ceremonies is associated with lower height‐for‐age zscore, higher probability of stunting and underweight in early child development. The lasting impact suggests that “catch up” is limited. The squeeze is stronger for the fetal period and towards the lower tail... |
