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Estimating the Effects of West Sumatra Public Asset Insurance Program on Short-Term Recovery after the September 2009 Earthquake

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  • Paul A. RASCHKY

    (Monash University Australia)

Abstract

This paper analyses the effect of the West Sumatra public asset insurance program on short-term economic recovery after the September 2009 West Sumatra Earthquake. We use satellite data on yearly differences in nighttimelight intensity as a proxy for economic activity, to investigate the effect of the earthquake damage on overall luminosity in 2009 and the progress in recovery in the year 2010. Our identification strategy applies a regression discontinuity (RD) approach that exploits the discontinuity in insurance coverage at the provincial border. We find a small, statistically significant and positive effect of the public insurance scheme on the short-term recovery in West Sumatra.

Suggested Citation

  • Paul A. RASCHKY, 2013. "Estimating the Effects of West Sumatra Public Asset Insurance Program on Short-Term Recovery after the September 2009 Earthquake," Working Papers DP-2013-35, Economic Research Institute for ASEAN and East Asia (ERIA).
    • Handle: RePEc:era:wpaper:dp-2013-35
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    References listed on IDEAS

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    Cited by:

    1. J. A. León & M. Ordaz & E. Haddad & I. F. Araújo, 2022. "Risk caused by the propagation of earthquake losses through the economy," Nature Communications, Nature, vol. 13(1), pages 1-11, December.

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    More about this item

    Keywords

    Natural Disaster Exposure; Economic Activity; Spatial Analysis; Natural Disaster Insurance.;
    All these keywords.

    JEL classification:

    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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