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Short and long run effects of earthquakes on farm businesses in Indonesia

Listed author(s):
  • Menéndez, Marta
  • Gignoux, Jérémie

This paper studies the impact of earthquakes on farm business assets in rural Indonesia. Using a panel fixed effects model, we evaluate if the negative consequences of earthquakes extend beyond the immediate event into the medium and long-term. Our results suggest that rural households were able to recover in the medium-run, and even exhibit welfare gains in the long-run. Productive assets in farm businesses were on average reconstituted and even increased in the medium-run. Thus, reconstruction strategies after large earthquakes seem to provide incentives to small farm business holders to reconstitute and increase their investments.

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File URL: http://purl.umn.edu/182721
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Paper provided by European Association of Agricultural Economists in its series 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia with number 182721.

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Date of creation: Aug 2014
Handle: RePEc:ags:eaae14:182721
Contact details of provider: Web page: http://www.eaae.org
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  1. Eduardo A. Cavallo & Ilan Noy, 2009. "The Economics of Natural Disasters: A Survey," IDB Publications (Working Papers) 6779, Inter-American Development Bank.
  2. Rose, Elaina, 2001. "Ex ante and ex post labor supply response to risk in a low-income area," Journal of Development Economics, Elsevier, vol. 64(2), pages 371-388, April.
  3. Thomas, Duncan & Witoelar, Firman & Frankenberg, Elizabeth & Sikoki, Bondan & Strauss, John & Sumantri, Cecep & Suriastini, Wayan, 2012. "Cutting the costs of attrition: Results from the Indonesia Family Life Survey," Journal of Development Economics, Elsevier, vol. 98(1), pages 108-123.
  4. Thomas, Timothy & Christiaensen, Luc & Do, Quy Toan & Trung, Le Dang, 2010. "Natural disasters and household welfare : evidence from Vietnam," Policy Research Working Paper Series 5491, The World Bank.
  5. Javier E. Baez & Dorothy Kronick & Andrew D. Mason, 2013. "Rural Households in a Changing Climate," World Bank Research Observer, World Bank Group, vol. 28(2), pages 267-289, August.
  6. Toya, Hideki & Skidmore, Mark, 2007. "Economic development and the impacts of natural disasters," Economics Letters, Elsevier, vol. 94(1), pages 20-25, January.
  7. Loayza, Norman V. & Olaberría, Eduardo & Rigolini, Jamele & Christiaensen, Luc, 2012. "Natural Disasters and Growth: Going Beyond the Averages," World Development, Elsevier, vol. 40(7), pages 1317-1336.
  8. Valerie Mueller & Daniel Osgood, 2009. "Long-term Impacts of Droughts on Labour Markets in Developing Countries: Evidence from Brazil," Journal of Development Studies, Taylor & Francis Journals, vol. 45(10), pages 1651-1662.
  9. Carter, Michael R. & Little, Peter D. & Mogues, Tewodaj & Negatu, Workneh, 2007. "Poverty Traps and Natural Disasters in Ethiopia and Honduras," World Development, Elsevier, vol. 35(5), pages 835-856, May.
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