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Gone with the Storm: Rainfall Shocks and Household Wellbeing in Guatemala

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  • Javier E. Baez
  • Leonardo Lucchetti
  • Maria E. Genoni
  • Mateo Salazar

Abstract

This paper identifies the negative consequences of the strongest tropical storm ever to strike Guatemala on household welfare. Per capita consumption fell in urban areas, raising poverty substantially. Households cut back on food consumption and basic durables, and attempted to cope by increasing their adult and child labour supply. The mechanisms at play include the intensity of the shock, food prices and the timing of Agatha with respect to local harvest cycles. The results are robust to placebo treatments, migration and measurement error, and partly explain the increase in poverty in the country previously attributed solely to the collateral effects of the global financial crisis.

Suggested Citation

  • Javier E. Baez & Leonardo Lucchetti & Maria E. Genoni & Mateo Salazar, 2017. "Gone with the Storm: Rainfall Shocks and Household Wellbeing in Guatemala," Journal of Development Studies, Taylor & Francis Journals, vol. 53(8), pages 1253-1271, August.
  • Handle: RePEc:taf:jdevst:v:53:y:2017:i:8:p:1253-1271
    DOI: 10.1080/00220388.2016.1224853
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    References listed on IDEAS

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    Cited by:

    1. Laura Jeanet Martínez Rodríguez, 2017. "Impacto de la ola invernal sobre las dinámicas de uso del tiempo de hogares rurales," Documentos CEDE 015603, Universidad de los Andes - CEDE.
    2. Ayala Wineman & Nicole M. Mason & Justus Ochieng & Lilian Kirimi, 2017. "Weather extremes and household welfare in rural Kenya," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 9(2), pages 281-300, April.
    3. Wineman, A. & Ochieng, J. & Mason, N. & Kirimi, L., 2015. "Let it rain: Weather extremes and household welfare in rural Kenya," Food Security Collaborative Policy Briefs 230982, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    4. Hallegatte,Stephane & Bangalore,Mook & Jouanjean,Marie Agnes, 2016. "Higher losses and slower development in the absence of disaster risk management investments," Policy Research Working Paper Series 7632, The World Bank.
    5. Camille Saint-Macary & Claire Zanuso, 2015. "Build back better? Long-lasting impact of the 2010 Earthquake in Haiti," Working Papers DT/2015/15, DIAL (Développement, Institutions et Mondialisation).
    6. repec:kap:enreec:v:73:y:2019:i:1:d:10.1007_s10640-018-0256-6 is not listed on IDEAS
    7. Arslan, A., 2018. "Climate resilience in rural Zambia: Evaluating farmers’ response to El Niño-induced drought," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 275905, International Association of Agricultural Economists.
    8. Nancy McCarthy & Talip Kilic & Alejandro de la Fuente & Joshua M. Brubaker, 2018. "Shelter from the Storm? Household-Level Impacts of, and Responses to, the 2015 Floods in Malawi," Economics of Disasters and Climate Change, Springer, vol. 2(3), pages 237-258, October.
    9. Isaure Delaporte & Mathilde Maurel, 2018. "Adaptation to climate change in Bangladesh," Climate Policy, Taylor & Francis Journals, vol. 18(1), pages 49-62, January.
    10. Adelman,Melissa Ann & Szekely,Miguel, 2016. "School dropout in Central America : an overview of trends, causes, consequences, and promising interventions," Policy Research Working Paper Series 7561, The World Bank.

    More about this item

    JEL classification:

    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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