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Short and long run effects of earthquakes on farm businesses in Indonesia

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  • Menéndez, Marta
  • Gignoux, Jérémie

Abstract

This paper studies the impact of earthquakes on farm business assets in rural Indonesia. Using a panel fixed effects model, we evaluate if the negative consequences of earthquakes extend beyond the immediate event into the medium and long-term. Our results suggest that rural households were able to recover in the medium-run, and even exhibit welfare gains in the long-run. Productive assets in farm businesses were on average reconstituted and even increased in the medium-run. Thus, reconstruction strategies after large earthquakes seem to provide incentives to small farm business holders to reconstitute and increase their investments.

Suggested Citation

  • Menéndez, Marta & Gignoux, Jérémie, 2014. "Short and long run effects of earthquakes on farm businesses in Indonesia," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182721, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae14:182721
    DOI: 10.22004/ag.econ.182721
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    Community/Rural/Urban Development; Risk and Uncertainty;

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