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Household Consumption and Natural Disasters: The Case of Hurricane Mitch in Nicaragua

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Author Info
Van den Berg, Marrit
Burger, Kees
Abstract

This paper analyses coping strategies and consumption reactions of rural households in Nicaragua to hurricane Mitch, which caused massive losses in especially the agricultural sector in 1998. A switching-regression model confirms theoretical considerations which indicate that responses to transitory incomes depend on wealth. Asset-poor households do and asset-rich households do not adjust their consumption to transitory income changes.

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Paper provided by European Association of Agricultural Economists in its series 2008 International Congress, August 26-29, 2008, Ghent, Belgium with number 44380.

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Date of creation: 2008
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Handle: RePEc:ags:eaae08:44380

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Related research
Keywords: Natural disasters; assets; consumption smoothing; Food Consumption/Nutrition/Food Safety; Resource /Energy Economics and Policy;

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References listed on IDEAS
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  2. Stefan Dercon & John Hoddinott & Tassew Woldehanna, 2005. "Shocks and Consumption in 15 Ethiopian Villages, 1999--2004," Journal of African Economies, Oxford University Press, vol. 14(4), pages 559-585, December.
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  4. Morduch, Jonathan, 1995. "Income Smoothing and Consumption Smoothing," Journal of Economic Perspectives, American Economic Association, vol. 9(3), pages 103-14, Summer. [Downloadable!] (restricted)
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  5. Jalan, Jyotsna & Ravallion, Martin, 2001. "Behavioral responses to risk in rural China," Journal of Development Economics, Elsevier, vol. 66(1), pages 23-49, October. [Downloadable!] (restricted)
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  6. Deaton, Angus, 1991. "Saving and Liquidity Constraints," Econometrica, Econometric Society, vol. 59(5), pages 1221-48, September. [Downloadable!] (restricted)
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  7. Christopher B. Barrett, 2005. "Rural poverty dynamics: development policy implications," Agricultural Economics, International Association of Agricultural Economists, vol. 32(s1), pages 45-60, 01. [Downloadable!] (restricted)
  8. John Hoddinott, 2006. "Shocks and their consequences across and within households in Rural Zimbabwe," The Journal of Development Studies, Taylor and Francis Journals, vol. 42(2), pages 301-321, February. [Downloadable!] (restricted)
  9. Michael Carter & Christopher Barrett, 2006. "The economics of poverty traps and persistent poverty: An asset-based approach," The Journal of Development Studies, Taylor and Francis Journals, vol. 42(2), pages 178-199, February. [Downloadable!] (restricted)
  10. Townsend, Robert M, 1994. "Risk and Insurance in Village India," Econometrica, Econometric Society, vol. 62(3), pages 539-91, May. [Downloadable!] (restricted)
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  11. Kinsey, Bill & Burger, Kees & Gunning, Jan Willem, 1998. "Coping with drought in Zimbabwe: Survey evidence on responses of rural households to risk," World Development, Elsevier, vol. 26(1), pages 89-110, January. [Downloadable!] (restricted)
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