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The Tempest: Natural Disasters, Early Shocks and Children's Short- and Long-Run Development

  • Eva Deuchert
  • Christina Felfe

Economic theory predicts that adverse shocks during early childhood have detrimental short- and long-run consequences for children’s development. We examine this hypothesis by analyzing the short-and long-run effects on children’s health and education of a specific shock: housing damages caused by a super typhoon. Our results reveal negative effects on children’s education - not, however, on health. The effects on children’s education aggravate over time. Empirical evidence indicates that the main underlying channel is a shock on families’ wealth.

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File URL: http://www.cesifo-group.de/portal/page/portal/DocBase_Content/WP/WP-CESifo_Working_Papers/wp-cesifo-2013/wp-cesifo-2013-03/cesifo1_wp4168.pdf
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Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 4168.

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Date of creation: 2013
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Handle: RePEc:ces:ceswps:_4168
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