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Does Microfinance Make Households More Resilient to Shocks? Evidence From the Cyclone Phailin in India

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  • Thijmen Calis
  • Shubhashis Gangopadhyay
  • Namrata Ghosh
  • Robert Lensink
  • Aljar Meesters

Abstract

This research note examines the relevance of microfinance as a means to cope with natural disasters, using the event of the cyclone Phailin, which struck India in 2013. The results indicate that microfinance helps reduce the negative effects of extreme weather‐related shocks. In light of the somewhat disappointing outcomes suggested by several recent rigorous impact studies, this research paints a more positive picture of the importance of microfinance as an insurance mechanism to deal with weather‐related risks. Copyright © 2017 John Wiley & Sons, Ltd.

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  • Thijmen Calis & Shubhashis Gangopadhyay & Namrata Ghosh & Robert Lensink & Aljar Meesters, 2017. "Does Microfinance Make Households More Resilient to Shocks? Evidence From the Cyclone Phailin in India," Journal of International Development, John Wiley & Sons, Ltd., vol. 29(7), pages 1011-1015, October.
  • Handle: RePEc:wly:jintdv:v:29:y:2017:i:7:p:1011-1015
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    Cited by:

    1. Chloe H. Lucas & Kate I. Booth & Carolina Garcia, 2021. "Insuring homes against extreme weather events: a systematic review of the research," Climatic Change, Springer, vol. 165(3), pages 1-21, April.
    2. Nguyen, Thanh-Tung & Nguyen, Trung Thanh & Grote, Ulrike, 2020. "Multiple shocks and households' choice of coping strategies in rural Cambodia," Ecological Economics, Elsevier, vol. 167(C).
    3. Boris O. K. Lokonon, 2022. "Multiple shocks and households’ choice of coping strategies in Benin: The relative importance of climate shocks," Bulletin of Economic Research, Wiley Blackwell, vol. 74(4), pages 949-964, October.

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