Short and Long Run Effects of Earthquakes on Farm Businesses in Indonesia

Jérémie Gignoux (1) , Marta Menéndez (2)

1 PSE - Paris School of Economics
2 LEDa - Laboratoire d'Economie de Dauphine

This paper studies the impact of earthquakes on farm business assets in rural Indonesia. Using a panel fixed effects model, we evaluate if the negative consequences of earthquakes extend beyond the immediate event into the medium and long-term. Our results suggest that rural households were able to recover in the medium-run, and even exhibit welfare gains in the long-run. Productive assets in farm businesses were on average reconstituted and even increased in the medium-run. Thus, reconstruction strategies after large earthquakes seem to provide incentives to small farm business holders to reconstitute and increase their investments.

Mots clés: Natural disasters; long-term effects; recovery; farm businesses

Domaines: Économie et finance quantitative [q-fin]

Jérémie Gignoux, Marta Menéndez. Short and Long Run Effects of Earthquakes on Farm Businesses in Indonesia. EAAE 2014 Congress : "Agri-Food and Rural Innovations for Healthier Societies", Aug 2014, Ljubljana, Slovenia. pp.13. ⟨hal-01617392⟩