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Private transfers to cope with a natural disaster: evidence from Bangladesh

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  • MOZUMDER, PALLAB
  • BOHARA, ALOK K.
  • BERRENS, ROBERT P.
  • HALIM, NAFISA

Abstract

Based on multiple rounds of household survey data collected in the year after the 1998 massive flooding in Bangladesh, we investigate the role of private transfers as a social coping response to natural disasters. We also explore the role of private transfers (gifts) as an informal insurance mechanism to smooth consumption in the face of an adverse covariate shock caused by the flooding. The level of transfers made is shown to be altruistically calibrated to the severity of flood exposure. As an indicator of the economic importance of such gifts, the amount of transfers received is shown to significantly contribute to reducing household consumption variability. We discuss the policy implications of our findings in a developing country context.

Suggested Citation

  • Mozumder, Pallab & Bohara, Alok K. & Berrens, Robert P. & Halim, Nafisa, 2009. "Private transfers to cope with a natural disaster: evidence from Bangladesh," Environment and Development Economics, Cambridge University Press, vol. 14(2), pages 187-210, April.
    • Handle: RePEc:cup:endeec:v:14:y:2009:i:02:p:187-210_00
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    Citations

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    Cited by:

    1. Tanvir Pavel & Syed Hasan & Nafisa Halim & Pallab Mozumder, 2018. "Natural Hazards and Internal Migration: The Role of Transient versus Permanent Shocks," Working Papers 1806, Florida International University, Department of Economics.
    2. Sisi Meng & Pallab Mozumder, 2021. "Hurricane Sandy: Damages, Disruptions and Pathways to Recovery," Economics of Disasters and Climate Change, Springer, vol. 5(2), pages 223-247, July.
    3. Serge Savary & Sonia Akter & Conny Almekinders & Jody Harris & Lise Korsten & Reimund Rötter & Stephen Waddington & Derrill Watson, 2020. "Mapping disruption and resilience mechanisms in food systems," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 12(4), pages 695-717, August.
    4. Sakib Mahmud & Gazi Mainul Hassan, 2014. "Consequences of Public Programs and Private Transfers on Household Investment in Storm Protection," Working Papers in Economics 14/01, University of Waikato.
    5. Veeshan Rayamajhee & Alok K. Bohara & Virgil Henry Storr, 2020. "Ex-Post Coping Responses and Post-Disaster Resilience: a Case from the 2015 Nepal Earthquake," Economics of Disasters and Climate Change, Springer, vol. 4(3), pages 575-599, October.
    6. Sandra García & Jorge Cuartas, 2017. "With a Little Help from my Friends: the Multiplier Effect of Public Subsidies through Private Support," Documentos de trabajo 17647, Escuela de Gobierno - Universidad de los Andes.
    7. Will, Meike & Groeneveld, Jürgen & Lenel, Friederike & Frank, Karin & Müller, Birgit, 2023. "Determinants of Household Vulnerability in Networks with Formal Insurance and Informal Risk-Sharing," Ecological Economics, Elsevier, vol. 212(C).
    8. Yoshito Takasaki, 2011. "How is disaster aid allocated within poor villages?," Tsukuba Economics Working Papers 2011-004, Faculty of Humanities and Social Sciences, University of Tsukuba.
    9. Takasaki, Yoshito, 2017. "Post-disaster Informal Risk Sharing Against Illness," World Development, Elsevier, vol. 94(C), pages 64-74.

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