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On the political economy of allocation of agricultural disaster relief payments: application to Taiwan

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  • Hung-Hao Chang
  • David Zilberman

Abstract

This paper examines the importance of political factors in the allocation of agricultural disaster payments as a result of Typhoon Morakot that ravaged Taiwan in 2009. The instrumental variable model was estimated using a unique data set that combines a national administrative profile of the 607,704 recipients of disaster relief payments and the matched weather and geographic information. Results show that the political factor significantly determined the level of disaster relief payments. The incumbent government paid more to the farms located in towns which voted for the incumbent party to a greater extent than they did for the opposition party.

Suggested Citation

  • Hung-Hao Chang & David Zilberman, 2014. "On the political economy of allocation of agricultural disaster relief payments: application to Taiwan," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 41(4), pages 657-680.
    • Handle: RePEc:oup:erevae:v:41:y:2014:i:4:p:657-680.
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    File URL: http://hdl.handle.net/10.1093/erae/jbt037
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    Cited by:

    1. Jaerim Choi & Sunghun Lim, 2023. "Tariffs, agricultural subsidies, and the 2020 US presidential election," American Journal of Agricultural Economics, John Wiley & Sons, vol. 105(4), pages 1149-1175, August.
    2. Ramsey, Austin Ford & Santeramo, Fabio Gaetano, 2017. "Crop Insurance in the European Union: Lessons and Caution from the United States," MPRA Paper 79164, University Library of Munich, Germany.
    3. Tatyana Deryugina & Barrett Kirwan, 2018. "Does The Samaritan'S Dilemma Matter? Evidence From U.S. Agriculture," Economic Inquiry, Western Economic Association International, vol. 56(2), pages 983-1006, April.
    4. Fabio G. Santeramo & A. Ford Ramsey, 2017. "Crop Insurance in the EU: Lessons and Caution from the US," EuroChoices, The Agricultural Economics Society, vol. 16(3), pages 34-39, December.
    5. F. G. Santeramo & B. K. Goodwin & F. Adinolfi & F. Capitanio, 2016. "Farmer Participation, Entry and Exit Decisions in the Italian Crop Insurance Programme," Journal of Agricultural Economics, Wiley Blackwell, vol. 67(3), pages 639-657, September.
    6. Hong, Yan-Zhen & Chang, Hung-Hao, 2020. "Does digitalization affect the objective and subjective wellbeing of forestry farm households? Empirical evidence in Fujian Province of China," Forest Policy and Economics, Elsevier, vol. 118(C).
    7. Meri Davlasheridze & Qing Miao, 2021. "Natural disasters, public housing, and the role of disaster aid," Journal of Regional Science, Wiley Blackwell, vol. 61(5), pages 1113-1135, November.
    8. Meyerhoefer, Chad D. & Chang, Hung-Hao, 2021. "Health Care Expenditure and Farm Household Income: Evidence from Natural Disasters," 2021 Annual Meeting, August 1-3, Austin, Texas 313907, Agricultural and Applied Economics Association.

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