Benefit in the wake of disaster: Long-run effects of earthquakes on welfare in rural Indonesia

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dc.description.abstract We examine the long-term effects on individual economic outcomes of a set of earthquakes – numerous, large, but mostly not extreme – that occurred in rural Indonesia since 1985. Using longitudinal individual-level data from large-scale household surveys, together with precise measures of local ground tremors obtained from a US Geological Survey database, we identify the effects of earthquakes, exploiting the quasi-random spatial and temporal nature of their distribution. Affected individuals experience short-term economic losses but recover in the medium run (after two to five years), and even exhibit income and welfare gains in the long term (six to twelve years). The stocks of productive assets, notably in farms, get reconstituted and public infrastructures are improved, seemingly partly through external aid, allowing productivity to recover. These findings tend to discount the presence of poverty traps, and exhibit the potential long-term benefits from well-designed post-disaster interventions in contexts where disasters primarily affect physical assets. en
dc.title Benefit in the wake of disaster: Long-run effects of earthquakes on welfare in rural Indonesia en
dc.contributor.author Gignoux, Jérémie
dc.contributor.author Menéndez, Marta
dc.date.accessioned 2015-10-14T08:02:07Z
dc.date.available 2015-10-14T08:02:07Z
dc.date.issued 2015-10-14
dc.identifier.uri http://hdl.handle.net/123456789/53029
lacea.language.supported en
dc.description Working paper
dc.language.iso en
dc.subject Natural Disasters
dc.subject Earthquakes
dc.subject Rural Indonesia
dc.subject Long Term Effects
dc.subject Welfare
dc.subject Reconstruction
dc.subject Aid
dc.type Working Paper

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