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Forest and Sea as Insurance among Fijians

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  • Yoshito Takasaki

Abstract

This paper examines how forest and marine resources serve as insurance against a tropical cyclone using original household data gathered in rural Fiji. The fixed-effects estimator for a censored dependent variable controls for unobservable household heterogeneity that can cause bias. I propose a simple empirical strategy, which can be widely applied, to test whether a household intensifies labor activity to earn extra income to be shared under private risk-sharing arrangements. I find that while households abandon forest product gathering right after the cyclone, value-added handicrafts made of some forest products by women serve as self-insurance against crop damage after the emergency period and this is especially so among female-headed households. Fijians intensify fishing to augment mutual insurance for the recovery from village facility damage and housing damages experienced by others. I discuss how this distinct pattern emerges as private adjustments to cyclone relief delivered to the region.

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File URL: http://www.econ.tsukuba.ac.jp/RePEc/2009-002.pdf
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Bibliographic Info

Paper provided by Economics, Graduate School of Humanities and Social Sciences, University of Tsukuba in its series Tsukuba Economics Working Papers with number 2009-002.

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Date of creation: 2009
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Handle: RePEc:tsu:tewpjp:2009-002

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