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The impact of natural and manmade disasters on household welfare

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  • Yasuyuki Sawada

Abstract

In this article, we provide selective evidence on the impact of natural and manmade disasters on household welfare. First, we consider "ex ante" risk management and "ex post" risk-coping behaviors separately, showing evidence from the Asian economic crisis, earthquakes, and tsunami disasters. Second, we differentiate idiosyncratic risks from nondiversifiable aggregate risks that characterize a disaster. We also discuss the difficulties of designing index-type insurance against natural disasters, which are often rare, unforeseen events. Then, we investigate the role of self-insurance against large-scale disasters under which formal or informal mutual insurance mechanisms are largely ineffective. Credit accessibility is identified as one of the key factors facilitating risk-coping strategies. Copyright 2007 International Association of Agricultural Economists.

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Bibliographic Info

Article provided by International Association of Agricultural Economists in its journal Agricultural Economics.

Volume (Year): 37 (2007)
Issue (Month): s1 (December)
Pages: 59-73

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Handle: RePEc:bla:agecon:v:37:y:2007:i:s1:p:59-73

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Citations

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Cited by:
  1. Ernest Molua, 2012. "Climate extremes, location vulnerability and private costs of property protection in Southwestern Cameroon," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 17(3), pages 293-310, March.
  2. Kurosaki, Takashi & Khan, Humayun & Shah, Mir Kalan & Tahir, Muhammad, 2011. "Natural Disasters, Relief Aid, and Household Vulnerability in Pakistan: Evidence from a Pilot Survey in Khyber Pakhtunkhwa," PRIMCED Discussion Paper Series 12, Institute of Economic Research, Hitotsubashi University.
  3. Eiji Yamamura, 2013. "Public sector corruption and the probability of technological disasters," EERI Research Paper Series EERI RP 2013/02, Economics and Econometrics Research Institute (EERI), Brussels.
  4. Eiji Yamamura, 2013. "Natural disasters and social capital formation: The impact of the Great Hanshin-Awaji earthquake," EERI Research Paper Series EERI RP 2013/10, Economics and Econometrics Research Institute (EERI), Brussels.
  5. Eiji Yamamura, 2013. "Natural Disasters and Participation in Volunteer Activities: A Case Study of the Great Hanshin-Awaji Earthquake," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 84(1), pages 103-117, 03.
  6. Noy, Ilan & Karim, Azreen, 2013. "Poverty, inequality and natural disasters – A survey," Working Paper Series 2974, Victoria University of Wellington, School of Economics and Finance.
  7. Yamamura, Eiji, 2012. "Death tolls from natural disasters: Influence of interactions between fiscal decentralization, institution, and economic development," MPRA Paper 36987, University Library of Munich, Germany.
  8. Yoshito Takasaki, 2013. "Do natural disasters beget fraud victimization?: Unrealized coping through labor migration among the poor," Tsukuba Economics Working Papers 2013-002, Economics, Graduate School of Humanities and Social Sciences, University of Tsukuba.
  9. Kurosaki, Takashi, 2012. "Household-level Recovery after Floods in a Developing Country: Evidence from Pakistan," CEI Working Paper Series 2012-08, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.
  10. Narayanan K & Unmesh Patnaik, 2010. "Vulnerability and Coping to Disasters: A Study of Household Behaviour in Flood Prone Region of India," Working Papers id:2470, eSocialSciences.
  11. TAMURA Sakuya & SAWADA Yasuyuki, 2009. "Consumption Insurance against Unforeseen Epidemics:The Case of Avian Influenza in Vietnam," Discussion papers 09023, Research Institute of Economy, Trade and Industry (RIETI).
  12. Kurosaki, Takashi, 2011. "Vulnerability of Household Consumption to Village-level Aggregate Shocks in a Developing Country," PRIMCED Discussion Paper Series 8, Institute of Economic Research, Hitotsubashi University.
  13. Kurosaki, Takashi & Khan, Humayun & Shah, Mir Kalan & Tahir, Muhammad, 2012. "Household-level Recovery after Floods in a Developing Country: Further Evidence from Khyber Pakhtunkhwa, Pakistan," PRIMCED Discussion Paper Series 27, Institute of Economic Research, Hitotsubashi University.
  14. Yoshito Takasaki, 2012. "Do natural disasters decrease the gender gap in schooling?," Tsukuba Economics Working Papers 2012-001, Economics, Graduate School of Humanities and Social Sciences, University of Tsukuba.
  15. Yamamura, Eiji, 2013. "Impact of natural disasters on income inequality: Analysis using panel data during the period 1965 to 2004," MPRA Paper 45623, University Library of Munich, Germany.
  16. Heidelbach, Olaf, 2007. "Efficiency of selected risk management instruments: An empirical analysis of risk reduction in Kazakhstani crop production," Studies on the Agricultural and Food Sector in Central and Eastern Europe, Leib­niz Institute of Agricultural Development in Central and Eastern Europe (IAMO), volume 40, number 92323.
  17. Yamamura, Eiji, 2012. "Natural disasters and their long-term effect on happiness: the case of the great Hanshin-Awaji earthquake," MPRA Paper 37505, University Library of Munich, Germany.

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