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Do Natural Disasters Affect the Poor Disproportionately? The Case of Typhoon Milenyo in the Rural Philippines

  • Sakai, Yoko
  • Estudillo, Jonna P.
  • Fuwa, Nobuhiko
  • Higuchi, Yuki
  • Sawada, Yasuyuki

This paper illustrates the sharp contrast in welfare impacts between the rich and the poor caused by typhoon Milenyo in a Philippine village. Fish price dropped sharply after a large volume of cultured fish was set loose due to the damage caused to fish pens near the village, leading to positive net welfare gains among the wealthy. Among the poor, however, the negative effects of food (other than fish) price increase outweighed the positive benefit of the fish price decrease, and the poor non-agricultural households (who receive their income by cash rather than by rice) were the most severely hit.

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File URL: http://hermes-ir.lib.hit-u.ac.jp/rs/bitstream/10086/25355/1/No31-dp.pdf
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Paper provided by Institute of Economic Research, Hitotsubashi University in its series PRIMCED Discussion Paper Series with number 31.

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Length: 36 p.
Date of creation: Nov 2012
Date of revision:
Handle: RePEc:hit:primdp:31
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  1. Deaton, A., 1988. "Quality, Quantity, And Spatial Variation Of Price," Papers 30, World Bank - Living Standards Measurement.
  2. James Levinsohn & Steven Berry & Jed Friedman, 1999. "Impacts of the Indonesian Economic Crisis: Price Changes and the Poor," William Davidson Institute Working Papers Series 249, William Davidson Institute at the University of Michigan.
  3. Francisco H. G. Ferreira & Anna Fruttero & Phillippe G. Leite & Leonardo R. Lucchetti, 2013. "Rising Food Prices and Household Welfare: Evidence from Brazil in 2008," Journal of Agricultural Economics, Wiley Blackwell, vol. 64(1), pages 151-176, 02.
  4. Robert T. Jensen & Nolan H. Miller, 2008. "Giffen Behavior and Subsistence Consumption," American Economic Review, American Economic Association, vol. 98(4), pages 1553-77, September.
  5. Robert J. Barro, 2009. "Rare Disasters, Asset Prices, and Welfare Costs," American Economic Review, American Economic Association, vol. 99(1), pages 243-64, March.
  6. Jed Friedman & James Levinsohn, 2001. "The Distributional Impacts of Indonesia's Financial Crisis on Household Welfare: A 'Rapid Response' Methodology," Working Papers 482, Research Seminar in International Economics, University of Michigan.
  7. Wood, Benjamin D.K. & Nelson, Carl H. & Nogueira, Lia, 2012. "Poverty effects of food price escalation: The importance of substitution effects in Mexican households," Food Policy, Elsevier, vol. 37(1), pages 77-85.
  8. Zvi Griliches & Jerry A. Hausman, 1984. "Errors in Variables in Panel Data," NBER Technical Working Papers 0037, National Bureau of Economic Research, Inc.
  9. Kei Kajisa, 2007. "Personal Networks and Nonagricultural Employment: The Case of a Farming Village in the Philippines," Economic Development and Cultural Change, University of Chicago Press, vol. 55, pages 669-707.
  10. Yasuyuki Sawada & Satoshi Shimizutani, 2008. "How Do People Cope with Natural Disasters? Evidence from the Great Hanshin-Awaji (Kobe) Earthquake in 1995," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 40(2-3), pages 463-488, 03.
  11. Deaton, Angus, 1989. "Rice Prices and Income Distribution in Thailand: A Non-parametric Analysis," Economic Journal, Royal Economic Society, vol. 99(395), pages 1-37, Supplemen.
  12. Jonna P. Estudillo & Yasuyuki Sawada & Keijiro Otsuka, 2008. "Poverty and Income Dynamics in Philippine Villages, 1985-2004," Review of Development Economics, Wiley Blackwell, vol. 12(4), pages 877-890, November.
  13. Sawada, Yasuyuki & Higuchi, Yuki & Kajisa, Kei & Fuwa, Nobuhiko & Marciano, Esther B. & Estudillob, Jonna P., 2012. "The East Laguna Village: Four Decades of Studies in a Filipino Village," PRIMCED Discussion Paper Series 18, Institute of Economic Research, Hitotsubashi University.
  14. Glewwe, Paul & Hall, Gillette, 1998. "Are some groups more vulnerable to macroeconomic shocks than others? Hypothesis tests based on panel data from Peru," Journal of Development Economics, Elsevier, vol. 56(1), pages 181-206, June.
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