IDEAS home Printed from https://ideas.repec.org/p/hit/primdp/31.html
   My bibliography  Save this paper

Do Natural Disasters Affect the Poor Disproportionately? The Case of Typhoon Milenyo in the Rural Philippines

Author

Listed:
  • Sakai, Yoko
  • Estudillo, Jonna P.
  • Fuwa, Nobuhiko
  • Higuchi, Yuki
  • Sawada, Yasuyuki

Abstract

This paper illustrates the sharp contrast in welfare impacts between the rich and the poor caused by typhoon Milenyo in a Philippine village. Fish price dropped sharply after a large volume of cultured fish was set loose due to the damage caused to fish pens near the village, leading to positive net welfare gains among the wealthy. Among the poor, however, the negative effects of food (other than fish) price increase outweighed the positive benefit of the fish price decrease, and the poor non-agricultural households (who receive their income by cash rather than by rice) were the most severely hit.

Suggested Citation

  • Sakai, Yoko & Estudillo, Jonna P. & Fuwa, Nobuhiko & Higuchi, Yuki & Sawada, Yasuyuki, 2012. "Do Natural Disasters Affect the Poor Disproportionately? The Case of Typhoon Milenyo in the Rural Philippines," PRIMCED Discussion Paper Series 31, Institute of Economic Research, Hitotsubashi University.
    • Handle: RePEc:hit:primdp:31
    as

    Download full text from publisher

    File URL: https://hermes-ir.lib.hit-u.ac.jp/hermes/ir/re/25355/No31-dp.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Jonna P. Estudillo & Yasuyuki Sawada & Keijiro Otsuka, 2008. "Poverty and Income Dynamics in Philippine Villages, 1985–2004," Review of Development Economics, Wiley Blackwell, vol. 12(4), pages 877-890, November.
    2. Angus Deaton, 1991. "Price Elasticities from Survey Data: Extensions and Indonesian Results," International Economic Association Series, in: Marc Nerlove (ed.), Issues in Contemporary Economics, chapter 10, pages 253-283, Palgrave Macmillan.
    3. Marcel Fafchamps, 2003. "Rural Poverty, Risk and Development," Books, Edward Elgar Publishing, number 3127.
    4. de Janvry, Alain & Fafchamps, M. & Sadoulet, Elisabeth, 1991. "Peasant Household Behavior with Missing Markets: Some Paradoxes Explain," CUDARE Working Papers 198579, University of California, Berkeley, Department of Agricultural and Resource Economics.
    5. Francisco H. G. Ferreira & Anna Fruttero & Phillippe G. Leite & Leonardo R. Lucchetti, 2013. "Rising Food Prices and Household Welfare: Evidence from Brazil in 2008," Journal of Agricultural Economics, Wiley Blackwell, vol. 64(1), pages 151-176, February.
    6. Wood, Benjamin D.K. & Nelson, Carl H. & Nogueira, Lia, 2012. "Poverty effects of food price escalation: The importance of substitution effects in Mexican households," Food Policy, Elsevier, vol. 37(1), pages 77-85.
    7. James A. Levinsohn & Steven T. Berry & Jed Friedman, 2003. "Impacts of the Indonesian Economic Crisis.Price Changes and the Poor," NBER Chapters, in: Managing Currency Crises in Emerging Markets, pages 393-428, National Bureau of Economic Research, Inc.
    8. Deaton, Angus, 1988. "Quality, Quantity, and Spatial Variation of Price," American Economic Review, American Economic Association, vol. 78(3), pages 418-430, June.
    9. Yasuyuki Sawada & Satoshi Shimizutani, 2008. "How Do People Cope with Natural Disasters? Evidence from the Great Hanshin‐Awaji (Kobe) Earthquake in 1995," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 40(2‐3), pages 463-488, March.
    10. Jed Friedman & James Levinsohn, 2002. "The Distributional Impacts of Indonesia's Financial Crisis on Household Welfare: A "Rapid Response" Methodology," The World Bank Economic Review, World Bank, vol. 16(3), pages 397-423, December.
    11. Griliches, Zvi & Hausman, Jerry A., 1986. "Errors in variables in panel data," Journal of Econometrics, Elsevier, vol. 31(1), pages 93-118, February.
    12. Glewwe, Paul & Hall, Gillette, 1998. "Are some groups more vulnerable to macroeconomic shocks than others? Hypothesis tests based on panel data from Peru," Journal of Development Economics, Elsevier, vol. 56(1), pages 181-206, June.
    13. Luis Miguel Robles & Maximo Torero, 2010. "Understanding the Impact of High Food Prices in Latin America," Economía Journal, The Latin American and Caribbean Economic Association - LACEA, vol. 0(Spring 20), pages 117-164, January.
    14. Kei Kajisa, 2007. "Personal Networks and Nonagricultural Employment: The Case of a Farming Village in the Philippines," Economic Development and Cultural Change, University of Chicago Press, vol. 55(4), pages 669-707, July.
    15. Yujiro Hayami & Masao Kikuchi, 2000. "A Rice Village Saga," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-59918-5.
    16. de Janvry, Alain & Fafchamps, Marcel & Sadoulet, Elisabeth, 1991. "Peasant Household Behaviour with Missing Markets: Some Paradoxes Explained," Economic Journal, Royal Economic Society, vol. 101(409), pages 1400-1417, November.
    17. Tanguy Bernard & Alain De Janvry & Elisabeth Sadoulet, 2010. "When Does Community Conservatism Constrain Village Organizations?," Economic Development and Cultural Change, University of Chicago Press, vol. 58(4), pages 609-641, July.
    18. Robert J. Barro, 2009. "Rare Disasters, Asset Prices, and Welfare Costs," American Economic Review, American Economic Association, vol. 99(1), pages 243-264, March.
    19. Sawada, Yasuyuki & Higuchi, Yuki & Kajisa, Kei & Fuwa, Nobuhiko & Marciano, Esther B. & Estudillob, Jonna P., 2012. "The East Laguna Village: Four Decades of Studies in a Filipino Village," PRIMCED Discussion Paper Series 18, Institute of Economic Research, Hitotsubashi University.
    20. Robert T. Jensen & Nolan H. Miller, 2008. "Giffen Behavior and Subsistence Consumption," American Economic Review, American Economic Association, vol. 98(4), pages 1553-1577, September.
    21. Deaton, Angus, 1989. "Rice Prices and Income Distribution in Thailand: A Non-parametric Analysis," Economic Journal, Royal Economic Society, vol. 99(395), pages 1-37, Supplemen.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sakai, Yoko & Estudillo, Jonna P. & Fuwa, Nobuhiko & Higuchi, Yuki & Sawada, Yasuyuki, 2017. "Do Natural Disasters Affect the Poor Disproportionately? Price Change and Welfare Impact in the Aftermath of Typhoon Milenyo in the Rural Philippines," World Development, Elsevier, vol. 94(C), pages 16-26.
    2. Daniel Lederman & Guido Porto, 2016. "The Price Is Not Always Right: On the Impacts of Commodity Prices on Households (and Countries)," The World Bank Research Observer, World Bank, vol. 31(1), pages 168-197.
    3. Rita Motzigkeit Gonzalez, 2016. "Welfare effects of changed prices The “Tortilla Crisis" revisited," Working Papers 167, Bavarian Graduate Program in Economics (BGPE).
    4. L. ALAN WINTERS & NEIL McCULLOCH & ANDREW McKAY, 2015. "Trade Liberalization and Poverty: The Evidence So Far," World Scientific Book Chapters, in: Non-Tariff Barriers, Regionalism and Poverty Essays in Applied International Trade Analysis, chapter 14, pages 271-314, World Scientific Publishing Co. Pte. Ltd..
    5. Antonio Martuscelli, 2017. "Analysing the Impact of Price Shocks in Rural Economies: Do Household Responses Matter?," Journal of Development Studies, Taylor & Francis Journals, vol. 53(9), pages 1518-1534, September.
    6. Francisco H. G. Ferreira & Anna Fruttero & Phillippe G. Leite & Leonardo R. Lucchetti, 2013. "Rising Food Prices and Household Welfare: Evidence from Brazil in 2008," Journal of Agricultural Economics, Wiley Blackwell, vol. 64(1), pages 151-176, February.
    7. Thomas W. Hertel & Jeffrey J. Reimer, 2006. "Predicting the Poverty Impacts of Trade Reform," QA - Rivista dell'Associazione Rossi-Doria, Associazione Rossi Doria, issue 2, May.
    8. Christian Elleby, 2014. "Poverty and Price Transmission," IFRO Working Paper 2015/01, University of Copenhagen, Department of Food and Resource Economics.
    9. Zhihao Zheng & Yang Gao & Shida R. Henneberry & Rodolfo M. Nayga, 2023. "Policy reform and farmers' heterogeneous response: Measuring the income effects of corn price shocks," Agribusiness, John Wiley & Sons, Ltd., vol. 39(2), pages 564-585, March.
    10. Lugo, María Ana & Garriga, Santiago & Puig, Jorge, 2022. "Effects of food prices on poverty: The case of Paraguay, a food exporter and a non-fully urbanized country," Revista Latinoamericana de Desarrollo Economico, Carrera de Economía de la Universidad Católica Boliviana (UCB) "San Pablo", issue 37, pages 7-43, Mayo.
    11. Gilles Quentin Kane & Gwladys Laure Mabah Tene & Jean-Joël Ambagna & Isabelle Piot-Lepetit & Fondo Sikod, 2015. "The impact of food price volatility on consumer welfare in Cameroon," Working Papers hal-02801351, HAL.
    12. Gilles Quentin Kane & Gwladys Laure Mabah Tene & Jean Joël Ambagna & Isabelle Piot-Lepetit & Fondo Sikod, 2015. "The impact of food price volatility on consumer welfare in Cameroon," WIDER Working Paper Series 013, World Institute for Development Economic Research (UNU-WIDER).
    13. Charles Ackah, & Simon Appleton, 2007. "Food Price Changes and Consumer Welfare in Ghana in the 1990s," Discussion Papers 07/03, University of Nottingham, CREDIT.
    14. Barrett, Christopher B., 1998. "Immiserized growth in liberalized agriculture," World Development, Elsevier, vol. 26(5), pages 743-753, May.
    15. Sawada, Yasuyuki & Bhattacharyay, Madhurima & Kotera, Tomoaki, 2019. "Aggregate Impacts of Natural and Man-made Disasters: A Quantitative Comparison," International Journal of Development and Conflict, Gokhale Institute of Politics and Economics, vol. 9(1), pages 43-73.
    16. Anna D'Souza & Dean Jolliffe, 2012. "Rising Food Prices and Coping Strategies: Household-level Evidence from Afghanistan," Journal of Development Studies, Taylor & Francis Journals, vol. 48(2), pages 282-299, August.
    17. Barrett, Christopher B., 1996. "On price risk and the inverse farm size-productivity relationship," Journal of Development Economics, Elsevier, vol. 51(2), pages 193-215, December.
    18. Depetris Chauvin, Nicolas & Porto, Guido G., 2011. "Market Competition in Export Cash Crops and Farm Income," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126159, International Association of Agricultural Economists.
    19. Vergez, Antonin, 2007. "Agricultural Price Seasonality and Market Failure: Examining the Net Seller Household and the Net Benefit Ratio Definition," 106th Seminar, October 25-27, 2007, Montpellier, France 7911, European Association of Agricultural Economists.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hit:primdp:31. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Digital Resources Section, Hitotsubashi University Library (email available below). General contact details of provider: https://edirc.repec.org/data/iehitjp.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.