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Consumption insurance against natural disasters: evidence from the Great Hanshin-Awaji (Kobe) earthquake


  • Yasuyuki Sawada
  • Satoshi Shimizutani


We investigated whether people were insured against unexpected losses caused by the Great Hanshin-Awaji (Kobe) earthquake in 1995 and found that the full consumption insurance hypothesis was rejected overwhelmingly, suggesting the ineffectiveness of the formal/informal insurance mechanisms against the earthquake.

Suggested Citation

  • Yasuyuki Sawada & Satoshi Shimizutani, 2007. "Consumption insurance against natural disasters: evidence from the Great Hanshin-Awaji (Kobe) earthquake," Applied Economics Letters, Taylor & Francis Journals, vol. 14(4), pages 303-306.
  • Handle: RePEc:taf:apeclt:v:14:y:2007:i:4:p:303-306 DOI: 10.1080/13504850500447364

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    References listed on IDEAS

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    Cited by:

    1. Eiji Yamamura & Yoshiro Tsutsui & Chisako Yamane & Shoko Yamane & Nattavudh Powdthavee, 2015. "Trust and Happiness: Comparative Study Before and After the Great East Japan Earthquake," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 123(3), pages 919-935, September.
    2. Eiji Yamamura, 2016. "Natural disasters and social capital formation: The impact of the Great Hanshin-Awaji earthquake," Papers in Regional Science, Wiley Blackwell, vol. 95, pages 143-164, March.
    3. Park, Albert & Wang, Sangui, 2016. "Benefiting from Disaster?: Public and Private Responses to the Wenchuan Earthquake," CEPR Discussion Papers 11684, C.E.P.R. Discussion Papers.
    4. Patnaik, Unmesh & Narayanan, K, 2010. "Vulnerability and Coping to Disasters: A Study of Household Behaviour in Flood Prone Region of India," MPRA Paper 21992, University Library of Munich, Germany.
    5. Aldrich, Daniel P. & Sawada, Yasuyuki, 2015. "The physical and social determinants of mortality in the 3.11 tsunami," Social Science & Medicine, Elsevier, vol. 124(C), pages 66-75.
    6. Yamamura, Eiji, 2012. "Natural disasters and their long-term effect on happiness: the case of the great Hanshin-Awaji earthquake," MPRA Paper 37505, University Library of Munich, Germany.
    7. Eiji Yamamura, 2013. "Natural Disasters and Participation in Volunteer Activities: A Case Study of the Great Hanshin-Awaji Earthquake," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 84(1), pages 103-117, March.
    8. Czura, Kristina, 2015. "Do flexible repayment schedules improve the impact of microcredit? Evidence from a randomized evaluation in rural India," Discussion Papers in Economics 26608, University of Munich, Department of Economics.
    9. Tanaka, Ayumu, 2015. "The impacts of natural disasters on plants' growth: Evidence from the Great Hanshin-Awaji (Kobe) earthquake," Regional Science and Urban Economics, Elsevier, vol. 50(C), pages 31-41.
    10. Eiji Yamamura, 2013. "Public sector corruption and the probability of technological disasters," Economics of Governance, Springer, vol. 14(3), pages 233-255, August.
    11. Yasuyuki Sawada, 2007. "The impact of natural and manmade disasters on household welfare," Agricultural Economics, International Association of Agricultural Economists, vol. 37(s1), pages 59-73, December.
    12. Yasuyuki Sawada & Satoshi Shimizutani, 2007. "Consumption Insurance and Risk-Coping Strategies under Non-Separable Utility: Evidence from the Kobe Earthquake," CARF F-Series CARF-F-106, Center for Advanced Research in Finance, Faculty of Economics, The University of Tokyo.
    13. Eiji Yamamura & Yoshiro Tsutsui & Chisako Yamane & Shoko Yamane, 2014. "Effect of major disasters on geographical mobility intentions: the case of the Fukushima nuclear accident," ISER Discussion Paper 0903, Institute of Social and Economic Research, Osaka University.
    14. Fumio Ohtake & Naoko Okuyama & Masaru Sasaki & Kengo Yasui, 2014. "The Long-term Impact of the 1995 Hanshin-Awaji Earthquake on Wage Distribution," ISER Discussion Paper 0897, Institute of Social and Economic Research, Osaka University.
    15. Sawada, Yasuyuki & Takasaki, Yoshito, 2017. "Natural Disaster, Poverty, and Development: An Introduction," World Development, Elsevier, vol. 94(C), pages 2-15.
    16. Ryuhei Wakasugi & Ayumu Tanaka, 2013. "Recovery from the Mega-quake in Japan: Evidence from Manufacturing Firms," KIER Working Papers 867, Kyoto University, Institute of Economic Research.
    17. Park, Albert & Wang, Sangui, 2017. "Benefiting From Disaster? Public and Private Responses to the Wenchuan Earthquake," World Development, Elsevier, vol. 94(C), pages 38-50.
    18. Yamamura, Eiji, 2012. "Death tolls from natural disasters: Influence of interactions between fiscal decentralization, institution, and economic development," MPRA Paper 36987, University Library of Munich, Germany.
    19. Yasuyuki Sawada & Satoshi Shimizutani, 2011. "Changes in durable stocks, portfolio allocation, and consumption expenditure in the aftermath of the Kobe earthquake," Review of Economics of the Household, Springer, vol. 9(4), pages 429-443, December.
    20. Yasuyuki SAWADA & Fauziah ZEN, 2014. "Disaster Management in ASEAN," Working Papers DP-2014-03, Economic Research Institute for ASEAN and East Asia (ERIA).
    21. Yamamura, Eiji, 2013. "Impact of natural disasters on income inequality: Analysis using panel data during the period 1965 to 2004," MPRA Paper 45623, University Library of Munich, Germany.

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