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The Impact of Natural Disasters on Income Inequality: Analysis using Panel Data during the Period 1970 to 2004

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  • Eiji Yamamura

Abstract

Although natural disasters have been found to influence economic growth, their impact on income inequality has not yet been explored. This paper uses cross-country panel data during the period 1965 to 2004 to examine how the occurrence of natural disasters has affected income inequality. The major findings of this study are that although natural disasters have increased income inequality in the short (5 years) term, this effect disappears in the long term (10 years). These findings are observed even after the fixed effects of year and country are controlled for.

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  • Eiji Yamamura, 2015. "The Impact of Natural Disasters on Income Inequality: Analysis using Panel Data during the Period 1970 to 2004," International Economic Journal, Taylor & Francis Journals, vol. 29(3), pages 359-374, September.
    • Handle: RePEc:taf:intecj:v:29:y:2015:i:3:p:359-374
    DOI: 10.1080/10168737.2015.1020323
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    4. Dang, Hai-Anh & Hallegatte, Stephane & Trinh, Trong-Anh, 2023. "Does Global Warming Worsen Poverty and Inequality? An Updated Review," IZA Discussion Papers 16570, Institute of Labor Economics (IZA).
    5. Diana Alwis, 2020. "Distributional Impacts of Disaster Recovery: Sri Lankan Households a Decade after the 2004 Indian Ocean Tsunami," Economics of Disasters and Climate Change, Springer, vol. 4(1), pages 195-222, April.
    6. Maoxin Ye & Daniel P. Aldrich, 2021. "How natural hazards impact the social environment for vulnerable groups: an empirical investigation in Japan," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 105(1), pages 67-81, January.
    7. Aubin VIGNOBOUL, 2022. "The winds of inequalities: How hurricanes impact inequalities at the macro level?," LEO Working Papers / DR LEO 2986, Orleans Economics Laboratory / Laboratoire d'Economie d'Orleans (LEO), University of Orleans.
    8. Elena Paglialunga & Andrea Coveri & Antonello Zanfei, 2020. "Climate change and inequality in a global context. Exploring climate induced disparities and the reaction of economic systems," Working Papers 2003, University of Urbino Carlo Bo, Department of Economics, Society & Politics - Scientific Committee - L. Stefanini & G. Travaglini, revised 2020.
    9. Cappelli, Federica, 2020. "Investigating the Origins of Differentiated Vulnerabilities to Climate Change and their Effects on Wellbeing," FACTS: Firms And Cities Towards Sustainability 307987, Fondazione Eni Enrico Mattei (FEEM) > FACTS: Firms And Cities Towards Sustainability.
    10. Keerthiratne, Subhani & Tol, Richard S.J., 2018. "Impact of natural disasters on income inequality in Sri Lanka," World Development, Elsevier, vol. 105(C), pages 217-230.
    11. Kulanthaivelu, Eric, 2023. "The impact of tropical cyclones on income inequality in the U.S.: An empirical analysis," Ecological Economics, Elsevier, vol. 209(C).
    12. Paglialunga, Elena & Coveri, Andrea & Zanfei, Antonello, 2022. "Climate change and within-country inequality: New evidence from a global perspective," World Development, Elsevier, vol. 159(C).
    13. Wen-Ching Wang, 2018. "Setting up evaluate indicators for slope control engineering based on spatial clustering analysis," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 93(2), pages 921-939, September.
    14. Federica Cappelli, 2023. "Investigating the origins of differentiated vulnerabilities to climate change through the lenses of the Capability Approach," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 40(3), pages 1051-1074, October.
    15. Pleninger, Regina, 2022. "Impact of natural disasters on the income distribution," World Development, Elsevier, vol. 157(C).
    16. Bequet, Ludovic, 2020. "Biotech Crops, Input Use and Landslides: The case of Genetically Modified Corn in the Philippine Highlands," MPRA Paper 98225, University Library of Munich, Germany.
    17. Sweta Sen & Narayan Chandra Nayak & William Kumar Mohanty, 2023. "Impact of tropical cyclones on sustainable development through loops and cycles: evidence from select developing countries of Asia," Empirical Economics, Springer, vol. 65(5), pages 2467-2498, November.
    18. Warr, Peter & Aung, Lwin Lwin, 2019. "Poverty and inequality impact of a natural disaster: Myanmar’s 2008 cyclone Nargis," World Development, Elsevier, vol. 122(C), pages 446-461.
    19. Tovar Reaños, Miguel A., 2021. "Floods, flood policies and changes in welfare and inequality: Evidence from Germany," Ecological Economics, Elsevier, vol. 180(C).

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