The household response to persistent natural disasters: Evidence from Bangladesh

Type Working Paper
Title The household response to persistent natural disasters: Evidence from Bangladesh
Author(s)
Publication (Day/Month/Year) 2016
URL http://researcharchive.vuw.ac.nz/xmlui/bitstream/handle/10063/4968/SEF Working​Paper05-2016.pdf?sequence=1
Abstract
We examine the short-run economic impacts of recurrent flooding on Bangladeshi
households surveyed in 2000, 2005 and 2010. In 2010 Household Income and Expenditure
Survey (HIES), households answered a set of questions’ on whether they were affected by
flood and its likely impacts. We identify two treatment (affected) groups by using the selfreported
data and historical rainfall data based flood risk index. We estimate a difference-indifference
(DID) model to quantify the impacts on income, expenditure, asset and labour
market outcomes and further extend our analysis to different income and expenditure
brackets. Overall, we find robust evidence of negative impacts on agricultural income and
expenditure. Intriguingly, the extreme poor (i.e. the bottom 15th quintile) experience
significant positive impacts on agricultural income in the self-reported treatment case.

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