The impact of meteorological disasters on price inflation: the Philippine case
Date
2017-05
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Abstract
Due to its geographical location, the Philippines is vulnerable to the risks brought about
by typhoons that are frequently experienced in the area. We aimed to shed light into the
impact of meteorological disasters in the country, specifically on the Philippine financial
market. Using data on the price inflation of rice, corn, meat, and fish from 2009 to 2015,
we applied the Autoregressive Distributed Lags (ARDL) Model to determine the impact
of disasters on price inflation. The study found that meteorological disasters have a
generally upward impact on price inflation, particularly observed after 1 or more months.
If not addressed, the increase in the prices of these goods may lead to a decrease in the
purchasing power of the consumers who may have very well been affected by the disaster
themselves.
Description
Keywords
natural disaster, price inflation, primary products, regional analysis