IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/45623.html
   My bibliography  Save this paper

Impact of natural disasters on income inequality: Analysis using panel data during the period 1965 to 2004

Author

Listed:
  • Yamamura, Eiji

Abstract

Although natural disasters have been found to influence economic growth, their impact on income inequality has not yet been explored. This paper uses cross-country panel data during the period 1965 to 2004 to examine how the occurrence of natural disasters has affected income inequality. The major findings of this study are that although natural disasters have increased income inequality in the short term, this effect disappears in the medium term. These findings are observed even after the fixed effects of year and country are controlled for.

Suggested Citation

  • Yamamura, Eiji, 2013. "Impact of natural disasters on income inequality: Analysis using panel data during the period 1965 to 2004," MPRA Paper 45623, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:45623
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/45623/1/MPRA_paper_45623.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Horwich, George, 2000. "Economic Lessons of the Kobe Earthquake," Economic Development and Cultural Change, University of Chicago Press, vol. 48(3), pages 521-542, April.
    2. Noy, Ilan, 2009. "The macroeconomic consequences of disasters," Journal of Development Economics, Elsevier, vol. 88(2), pages 221-231, March.
    3. Eric Strobl, 2011. "The Economic Growth Impact of Hurricanes: Evidence from U.S. Coastal Counties," The Review of Economics and Statistics, MIT Press, vol. 93(2), pages 575-589, May.
    4. World Bank & United Nations, 2010. "Natural Hazards, UnNatural Disasters : The Economics of Effective Prevention," World Bank Publications - Books, The World Bank Group, number 2512, December.
    5. La Porta, Rafael & Lopez-de-Silanes, Florencio & Shleifer, Andrei & Vishny, Robert, 1999. "The Quality of Government," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 15(1), pages 222-279, April.
    6. Eduardo Cavallo & Andrew Powell & Oscar Becerra, 2010. "Estimating the Direct Economic Damages of the Earthquake in Haiti," Economic Journal, Royal Economic Society, vol. 120(546), pages 298-312, August.
    7. 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, March.
    8. Toya, Hideki & Skidmore, Mark, 2007. "Economic development and the impacts of natural disasters," Economics Letters, Elsevier, vol. 94(1), pages 20-25, January.
    9. Shiue, Carol H., 2004. "Local Granaries and Central Government Disaster Relief: Moral Hazard and Intergovernmental Finance in Eighteenth- and Nineteenth-Century China," The Journal of Economic History, Cambridge University Press, vol. 64(1), pages 100-124, March.
    10. Sam Whitt & Rick K. Wilson, 2007. "Public Goods in The Field: Katrina Evacuees in Houston," Southern Economic Journal, John Wiley & Sons, vol. 74(2), pages 377-387, October.
    11. Nick Carroll & Paul Frijters & Michael Shields, 2009. "Quantifying the costs of drought: new evidence from life satisfaction data," Journal of Population Economics, Springer;European Society for Population Economics, vol. 22(2), pages 445-461, April.
    12. Nejat Anbarci & Monica Escaleras & Charles A. Register, 2009. "Traffic fatalities: does income inequality create an externality?," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 42(1), pages 244-266, February.
    13. Yasuyuki Sawada, 2007. "The impact of natural and manmade disasters on household welfare," Agricultural Economics, International Association of Agricultural Economists, vol. 37(s1), pages 59-73, December.
    14. Yasuyuki Sawada & Satoshi Shimizutani, 2007. "Consumption insurance against natural disasters: evidence from the Great Hanshin-Awaji (Kobe) earthquake," Applied Economics Letters, Taylor & Francis Journals, vol. 14(4), pages 303-306.
    15. Mark Skidmore & Hideki Toya, 2013. "Natural Disaster Impacts and Fiscal Decentralization," Land Economics, University of Wisconsin Press, vol. 89(1), pages 101-117.
    16. Mark Skidmore & Hideki Toya, 2002. "Do Natural Disasters Promote Long-Run Growth?," Economic Inquiry, Western Economic Association International, vol. 40(4), pages 664-687, October.
    17. Raddatz, Claudio, 2007. "Are external shocks responsible for the instability of output in low-income countries?," Journal of Development Economics, Elsevier, vol. 84(1), pages 155-187, September.
    18. Jesús Crespo Cuaresma & Jaroslava Hlouskova & Michael Obersteiner, 2008. "Natural Disasters As Creative Destruction? Evidence From Developing Countries," Economic Inquiry, Western Economic Association International, vol. 46(2), pages 214-226, April.
    19. Eduardo Rodriguez-Oreggia & Alejandro De La Fuente & Rodolfo De La Torre & Hector A. Moreno, 2013. "Natural Disasters, Human Development and Poverty at the Municipal Level in Mexico," Journal of Development Studies, Taylor & Francis Journals, vol. 49(3), pages 442-455, March.
    20. Matthew E. Kahn, 2005. "The Death Toll from Natural Disasters: The Role of Income, Geography, and Institutions," The Review of Economics and Statistics, MIT Press, vol. 87(2), pages 271-284, May.
    21. Montalvo, Jose G. & Reynal-Querol, Marta, 2005. "Ethnic diversity and economic development," Journal of Development Economics, Elsevier, vol. 76(2), pages 293-323, April.
    22. Eduardo Cavallo & Andrew Powell & Oscar Becerra, 2010. "Estimating the Direct Economic Damages of the Earthquake in Haiti," Economic Journal, Royal Economic Society, vol. 120(546), pages 298-312, 08.
    23. Luechinger, Simon & Raschky, Paul A., 2009. "Valuing flood disasters using the life satisfaction approach," Journal of Public Economics, Elsevier, vol. 93(3-4), pages 620-633, April.
    24. La Porta, Rafael & Lopez-de-Silanes, Florencio & Vishny, Robert & Shleifer, Andrei, 1999. "The quality of government," Scholarly Articles 30747160, Harvard University Department of Economics.
    25. Anbarci, Nejat & Escaleras, Monica & Register, Charles A., 2005. "Earthquake fatalities: the interaction of nature and political economy," Journal of Public Economics, Elsevier, vol. 89(9-10), pages 1907-1933, September.
    26. Kellenberg, Derek K. & Mobarak, Ahmed Mushfiq, 2008. "Does rising income increase or decrease damage risk from natural disasters?," Journal of Urban Economics, Elsevier, vol. 63(3), pages 788-802, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Eric Nazindigouba Kere & Somlanaré Romuald Kinda & Rasmané Ouedraogo, 2015. "Do Natural Disasters Hurt Tax Resource Mobilization?," Working Papers halshs-01242968, HAL.
    2. Alexandru Bănică & Karima Kourtit & Peter Nijkamp, 2020. "Natural disasters as a development opportunity: a spatial economic resilience interpretation," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 40(2), pages 223-249, October.
    3. Azreen Karim & Ilan Noy, 2016. "Poverty And Natural Disasters — A Qualitative Survey Of The Empirical Literature," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 61(01), pages 1-36, March.
    4. S. Nazrul Islam & John Winkel, 2017. "Climate Change and Social Inequality," Working Papers 152, United Nations, Department of Economics and Social Affairs.
    5. Noy, Ilan & Karim, Azreen, 2013. "Poverty, inequality and natural disasters – A survey," Working Paper Series 18793, Victoria University of Wellington, School of Economics and Finance.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Eiji Yamamura, 2015. "The Impact of Natural Disasters on Income Inequality: Analysis using Panel Data during the Period 1970 to 2004," International Economic Journal, Taylor & Francis Journals, vol. 29(3), pages 359-374, September.
    2. Eduardo Cavallo & Ilan Noy, 2009. "The Economics of Natural Disasters - A Survey," Working Papers 200919, University of Hawaii at Manoa, Department of Economics.
    3. Eiji Yamamura, 2013. "Public sector corruption and the probability of technological disasters," Economics of Governance, Springer, vol. 14(3), pages 233-255, August.
    4. Eiji Yamamura, 2016. "Natural disasters and social capital formation: The impact of the Great Hanshin-Awaji earthquake," Papers in Regional Science, Wiley Blackwell, vol. 95, pages 143-164, March.
    5. Yamamura, Eiji, 2012. "Death tolls from natural disasters: Influence of interactions between fiscal decentralization, institution, and economic development," MPRA Paper 36987, University Library of Munich, Germany.
    6. Yamamura, Eiji, 2012. "Natural disasters and their long-term effect on happiness: the case of the great Hanshin-Awaji earthquake," MPRA Paper 37505, University Library of Munich, Germany.
    7. Lazzaroni, Sara & van Bergeijk, Peter A.G., 2014. "Natural disasters' impact, factors of resilience and development: A meta-analysis of the macroeconomic literature," Ecological Economics, Elsevier, vol. 107(C), pages 333-346.
    8. Eiji Yamamura, 2014. "Impact of natural disaster on public sector corruption," Public Choice, Springer, vol. 161(3), pages 385-405, December.
    9. Eiji Yamamura, 2012. "Death tolls from natural disasters: Influence of interactions among fiscal decentralization, institutions and economic development," EERI Research Paper Series EERI_RP_2012_08, Economics and Econometrics Research Institute (EERI), Brussels.
    10. Rahman, Muhammad Habibur, 2018. "Earthquakes don’t kill, built environment does: Evidence from cross-country data," Economic Modelling, Elsevier, vol. 70(C), pages 458-468.
    11. Yamamura, Eiji, 2011. "The changing effect of legal origin on death tolls in natural disasters from 1960 to 2008," MPRA Paper 33112, University Library of Munich, Germany.
    12. Sawada, Yasuyuki & Takasaki, Yoshito, 2017. "Natural Disaster, Poverty, and Development: An Introduction," World Development, Elsevier, vol. 94(C), pages 2-15.
    13. Eduardo Cavallo & Ilan Noy, 2010. "The Aftermath of Natural Disasters: Beyond Destruction," CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 11(2), pages 25-35, July.
    14. Eiji Yamamura, 2013. "Natural Disasters and Participation in Volunteer Activities: A Case Study of the Great Hanshin-Awaji Earthquake," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 84(1), pages 103-117, March.
    15. Noy, Ilan & Vu, Tam Bang, 2010. "The economics of natural disasters in a developing country: The case of Vietnam," Journal of Asian Economics, Elsevier, vol. 21(4), pages 345-354, August.
    16. Tanaka, Ayumu, 2015. "The impacts of natural disasters on plants' growth: Evidence from the Great Hanshin-Awaji (Kobe) earthquake," Regional Science and Urban Economics, Elsevier, vol. 50(C), pages 31-41.
    17. Matteo Coronese & Davide Luzzati, 2022. "Economic impacts of natural hazards and complexity science: a critical review," LEM Papers Series 2022/13, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    18. Yamamura, Eiji, 2011. "Effect of free media on views regarding the safety of nuclear energy after the 2011 disasters in Japan: evidence using cross-country data," MPRA Paper 32011, University Library of Munich, Germany.
    19. Emmanuel Apergis & Nicholas Apergis, 2021. "The impact of COVID-19 on economic growth: evidence from a Bayesian Panel Vector Autoregressive (BPVAR) model," Applied Economics, Taylor & Francis Journals, vol. 53(58), pages 6739-6751, December.
    20. Matthew A. COLE & Robert J R ELLIOTT & OKUBO Toshihiro & Eric STROBL, 2013. "Natural Disasters and Plant Survival: The impact of the Kobe earthquake," Discussion papers 13063, Research Institute of Economy, Trade and Industry (RIETI).

    More about this item

    Keywords

    natural disasters; income inequality;

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:45623. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.