IDEAS home Printed from https://ideas.repec.org/p/npf/wpaper/19-285.html
   My bibliography  Save this paper

Chennai 2015: A novel approach to measuring the impact of a natural disaster

Author

Listed:
  • Patnaik, Ila

    (National Institute of Public Finance and Policy)

  • Sane, Renuka

    (National Institute of Public Finance and Policy)

  • Shah, Ajay

    (National Institute of Public Finance and Policy)

Abstract

We estimate the impact of one flood on economic outcomes of households located in the region (Chennai, India). We measure the impact of the flood on income and consumption of households, and explore heterogeneity in impact by prosperity and financial constraints. We exploit a novel panel dataset (the CMIE CPHS) which covers 170,000 households in India, three times a year. We find that immediately after the floods, there was a sharp increase in consumption, which is reversed over a year. Expenditures are financed by not saving, or postponing asset purchases. The expenditure increase for the more vulnerable, or the financially constrained households, is smaller. This may be consistent with greater hardship for them.

Suggested Citation

  • Patnaik, Ila & Sane, Renuka & Shah, Ajay, 2019. "Chennai 2015: A novel approach to measuring the impact of a natural disaster," Working Papers 19/285, National Institute of Public Finance and Policy.
    • Handle: RePEc:npf:wpaper:19/285
    Note: Working Paper 285, 2019
    as

    Download full text from publisher

    File URL: https://www.nipfp.org.in/media/medialibrary/2019/12/WP_285_2019.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Harold Alderman & John Hoddinott & Bill Kinsey, 2006. "Long term consequences of early childhood malnutrition," Oxford Economic Papers, Oxford University Press, vol. 58(3), pages 450-474, July.
    2. Javier E. Baez & Leonardo Lucchetti & Maria E. Genoni & Mateo Salazar, 2017. "Gone with the Storm: Rainfall Shocks and Household Wellbeing in Guatemala," Journal of Development Studies, Taylor & Francis Journals, vol. 53(8), pages 1253-1271, August.
    3. Choudhury, Mita & Tripathi, Shruti & Dubey, Jay Dev, 2019. "Experiences with Government Sponsored Health Insurance Schemes in Indian States: A Fiscal Perspective," Working Papers 19/283, National Institute of Public Finance and Policy.
    4. del Ninno, Carlo & Lundberg, Mattias, 2005. "Treading water: The long-term impact of the 1998 flood on nutrition in Bangladesh," Economics & Human Biology, Elsevier, vol. 3(1), pages 67-96, March.
    5. Eduardo Cavallo & Ilan Noy, 2009. "The Economics of Natural Disasters - A Survey," Working Papers 200919, University of Hawaii at Manoa, Department of Economics.
    6. Eduardo Cavallo & Sebastian Galiani & Ilan Noy & Juan Pantano, 2013. "Catastrophic Natural Disasters and Economic Growth," The Review of Economics and Statistics, MIT Press, vol. 95(5), pages 1549-1561, December.
    7. Mundle, Sudipto & Sikdar, Satadru, 2019. "Subsidies, Merit Goods and the Fiscal Space for Reviving Growth: An Aspect of Public Expenditure in India," Working Papers 19/282, National Institute of Public Finance and Policy.
    8. Kazianga, Harounan & Udry, Christopher, 2006. "Consumption smoothing? Livestock, insurance and drought in rural Burkina Faso," Journal of Development Economics, Elsevier, vol. 79(2), pages 413-446, April.
    9. Berg, Gunhild & Schrader, Jan, 2012. "Access to credit, natural disasters, and relationship lending," Journal of Financial Intermediation, Elsevier, vol. 21(4), pages 549-568.
    10. Justin Gallagher & Daniel Hartley, 2017. "Household Finance after a Natural Disaster: The Case of Hurricane Katrina," American Economic Journal: Economic Policy, American Economic Association, vol. 9(3), pages 199-228, August.
    11. Albala-Bertrand, J. M., 1993. "Natural disaster situations and growth: A macroeconomic model for sudden disaster impacts," World Development, Elsevier, vol. 21(9), pages 1417-1434, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. The usefulness of the CMIE household survey data for electricity research in India
      by Anurodh in Ajay Shah's blog on 2024-05-08 08:35:00

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Chakraborty, Lekha & Kaur, Amandeep & Shrestha, Ruzel & Jain, Komal, 2019. "Nutrition - Public Expenditure Review: Evidence from Gujarat," Working Papers 19/286, National Institute of Public Finance and Policy.
    2. Beyer, Robert C. M. & Narayanan, Abhinav & Thakur, Gogol Mitra, 2022. "Natural Disasters and Economic Dynamics: Evidence from the Kerala Floods," Working Papers 22/383, National Institute of Public Finance and Policy.
    3. Ghosh, Anindita & Chakraborty, Lekha, 2019. "Analysing Telangana State Finances: Elongation of Term to Maturity of Debt to Sustain Economic Growth," Working Papers 19/288, National Institute of Public Finance and Policy.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gignoux, Jérémie & Menéndez, Marta, 2016. "Benefit in the wake of disaster: Long-run effects of earthquakes on welfare in rural Indonesia," Journal of Development Economics, Elsevier, vol. 118(C), pages 26-44.
    2. William Ginn, 2022. "Climate Disasters and the Macroeconomy: Does State-Dependence Matter? Evidence for the US," Economics of Disasters and Climate Change, Springer, vol. 6(1), pages 141-161, March.
    3. Hiroki Onuma & Kong Joo Shin & Shunsuke Managi, 2021. "Short-, Medium-, and Long-Term Growth Impacts of Catastrophic and Non-catastrophic Natural Disasters," Economics of Disasters and Climate Change, Springer, vol. 5(1), pages 53-70, April.
    4. Brei, Michael & Mohan, Preeya & Strobl, Eric, 2019. "The impact of natural disasters on the banking sector: Evidence from hurricane strikes in the Caribbean," The Quarterly Review of Economics and Finance, Elsevier, vol. 72(C), pages 232-239.
    5. Francesco Porcelli & Riccardo Trezzi, 2019. "The impact of earthquakes on economic activity: evidence from Italy," Empirical Economics, Springer, vol. 56(4), pages 1167-1206, April.
    6. Pauline AVRIL & Grégory LEVIEUGE & Camélia TURCU, 2021. "Natural Disasters and Financial Stress: Can Macroprudential Regulation Tame Green Swans?," LEO Working Papers / DR LEO 2913, Orleans Economics Laboratory / Laboratoire d'Economie d'Orleans (LEO), University of Orleans.
    7. Naqvi, Asjad, 2017. "Deep Impact: Geo-Simulations as a Policy Toolkit for Natural Disasters," World Development, Elsevier, vol. 99(C), pages 395-418.
    8. John Sseruyange & Jeroen Klomp, 2021. "Natural Disasters and Economic Growth: The Mitigating Role of Microfinance Institutions," Sustainability, MDPI, vol. 13(9), pages 1-20, April.
    9. Renjie Zhao & Shihu Zhong & Aiping He, 2018. "Disaster Impact, National Aid, and Economic Growth: Evidence from the 2008 Wenchuan Earthquake," Sustainability, MDPI, vol. 10(12), pages 1-22, November.
    10. Czura, Kristina & Klonner, Stefan, 2023. "Financial market responses to a natural disaster: Evidence from credit networks and the Indian Ocean tsunami," Journal of Development Economics, Elsevier, vol. 160(C).
    11. Stéphane Hallegatte & Adrien Vogt-Schilb & Julie Rozenberg & Mook Bangalore & Chloé Beaudet, 2020. "From Poverty to Disaster and Back: a Review of the Literature," Economics of Disasters and Climate Change, Springer, vol. 4(1), pages 223-247, April.
    12. Vikrant Panwar & Subir Sen, 2019. "Economic Impact of Natural Disasters: An Empirical Re-examination," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 13(1), pages 109-139, February.
    13. Cai, Yang & Li, Dongxu, 2024. "Modern banking development during natural disasters: Evidence from the early 20th century China," Journal of Empirical Finance, Elsevier, vol. 77(C).
    14. Berenger Djoumessi Tiague, 2023. "Floods, Agricultural Production, and Household Welfare: Evidence from Tanzania," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 85(2), pages 341-384, June.
    15. Vu, Tam Bang & Noy, Ilan, 2013. "Regional Effects of Natural Disasters in China," Working Paper Series 2812, Victoria University of Wellington, School of Economics and Finance.
    16. Berlemann, Michael & Wenzel, Daniela, 2018. "Hurricanes, economic growth and transmission channels," World Development, Elsevier, vol. 105(C), pages 231-247.
    17. Jacob Kim-Sherman & Lee Seltzer, 2024. "Clustering in Natural Disaster Losses," Staff Reports 1135, Federal Reserve Bank of New York.
    18. Brei, Michael & Mohan, Preeya & Perez Barahona, Agustin & Strobl, Eric, 2024. "Transmission of natural disasters to the banking sector: Evidence from thirty years of tropical storms in the Caribbean," Journal of International Money and Finance, Elsevier, vol. 141(C).
    19. Lazzaroni, Sara & van Bergeijk, Peter A.G., 2014. "Natural disasters' impact, factors of resilience and development: A meta-analysis of the macroeconomic literature," Ecological Economics, Elsevier, vol. 107(C), pages 333-346.
    20. Dieppe,Alistair Matthew & Kilic Celik,Sinem & Okou,Cedric Iltis Finafa, 2020. "Implications of Major Adverse Events on Productivity," Policy Research Working Paper Series 9411, The World Bank.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:npf:wpaper:19/285. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: S.Siva Chidambaram (email available below). General contact details of provider: http://www.nipfp.org.in .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.