Economic impact of earthquakes and volcanic eruptions to households: evidence from the Philippine
Date
2017-12-20
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Abstract
Considering the geographic state of the Philippines, and its high poverty incidence, it
becomes more exposed and vulnerable to disaster shocks. This high risk of being a victim of
disaster caused by natural hazards results to a high probability of a reduction in the welfare of
households. The study focuses on disaster shocks - earthquakes and volcanic eruption, and its
effects on households. We also identify the relevance of risk reduction and coping strategies to
welfare. Outcomes of both shocks show adverse effects to households. Insurance, house quality,
and education affects expenditures positively which could suggest long-run outcomes to
welfare. We end by emphasizing furtherance of ex-ante strategies through investment policies.
Description
Keywords
shock, natural disaster, earthquake, volcanic eruption, household welface