Here's an example from a hypothetical series of five households.

So, these five households listed in the table here,

the second column shows the proportion of the wealth that they have spent on health.

The third column shows a one if they experienced a catastrophic payment and

a zero if they did not.

In this case the catastrophic payment is defined

at a threshold of 10% of household consumption.

So the second column is measuring the proportion of household consumption spent

on health, and the third column is indicating whether or

not that proportion was above 10%.

The fourth column, the overshoot,

measures the difference between the amount spent on health and that threshold.

So the threshold is 10% and Household 1 spent 45% on health payments.

Which means that they've experienced a catastrophic payment and

they have an overshoot of 45% minus 10% which is 35%.

You can see here that three households experienced catastrophic payment and

two did not.

We can then get the incidence of catastrophic payment

as the number of households experiencing catastrophic payment

divided by the total number of households, which is 60%.

You can see that in the middle of column three.

And then we can calculate the mean overshoot as the total overshoot

divided by the number of households.

So the total overshoot is the sum of the overshoots for the individual households.

We divide that by the total number of households to get the mean overshoot.

That's 13%, you can see that in low with the mean overshoot.

And then finally, the mean positive overshoot is that same total overshoot

amongst only those houses which experience catastrophic payment.

That's the average level of intensity of catastrophe.

And that in this case is 22%.

So here we've summarized the population level financial

catastrophe and overshoot situation for this particular hypothetical population.

This is how we measure catastrophic payments.

Here's an example of some real statistics from Bangladesh which I

have prepared in some research I did a few years ago.