Publication:
High Consumption Volatility : The Impact of Natural Disasters?

Simple item page
dc.contributor.authorAuffret, Philippe
dc.date.accessioned2014-08-01T15:21:46Z
dc.date.available2014-08-01T15:21:46Z
dc.date.issued2003-01
dc.description.abstractA history of repeated external and domestic shocks has made economic insecurity a major concern across the Caribbean region. Of particular concern to all households, especially the poorest segments of the population, is the exposure to shocks that are generated by catastrophic events or natural disasters. The author shows that despite high consumption growth, the Caribbean region suffers from a high volatility of consumption that decreases household welfare. After presenting some empirical evidence that consumption volatility is higher in the Caribbean region than in the rest of the world, he makes some empirically testable inferences that help explain consumption volatility. The author develops a conceptual framework for analyzing the effects of catastrophic events on household and aggregate welfare. According to this framework, the volatility of consumption comes from production shocks that are transformed into consumption shocks mostly because of underdeveloped or ineffective risk-management mechanisms. Auffret conducts an empirical analysis of the impact of catastrophic events on 16 countries (6 from the Caribbean region and 10 from Latin America) from 1970-99 and shows that catastrophic events lead to: 1) A substantial decline in the growth of output. 2) A substantial decline in the growth of investment. 3) A more moderate decline in consumption growth (most of the decline is in private consumption, while public consumption declines moderately. 4) A worsening of the current account of the balance of payments.en
dc.identifierhttp://documents.worldbank.org/curated/en/2003/01/2128868/high-consumption-volatility-impact-natural-disasters
dc.identifier.doi10.1596/1813-9450-2962
dc.identifier.urihttps://hdl.handle.net/10986/19169
dc.languageEnglish
dc.language.isoen_US
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 2962
dc.rightsCC BY 3.0 IGO
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectAGRICULTURAL PRODUCTION
dc.subjectAGRICULTURE
dc.subjectARABLE LAND
dc.subjectAVERAGE CONSUMPTION
dc.subjectAVERAGE GROWTH
dc.subjectBALANCE OF PAYMENTS
dc.subjectCONCEPTUAL FRAMEWORK
dc.subjectCONSUMPTION GROWTH
dc.subjectCONSUMPTION PER CAPITA
dc.subjectCONSUMPTION SMOOTHING
dc.subjectCONSUMPTION VOLATILITY
dc.subjectCOUNTRY SIZE
dc.subjectDAMAGES
dc.subjectDEPENDENT VARIABLE
dc.subjectDEVELOPED COUNTRIES
dc.subjectDEVELOPED ECONOMIES
dc.subjectECONOMIC DEVELOPMENT
dc.subjectECONOMIC GROWTH
dc.subjectECONOMIC LOSS
dc.subjectECONOMIC POLICY
dc.subjectECONOMIC SECTORS
dc.subjectECONOMIC THEORY
dc.subjectECONOMIC WELFARE
dc.subjectECONOMIES OF SCALE
dc.subjectEMPIRICAL EVIDENCE
dc.subjectEQUILIBRIUM
dc.subjectEXOGENOUS VARIABLES
dc.subjectEXPECTED UTILITY
dc.subjectEXPLANATORY VARIABLE
dc.subjectEXPLANATORY VARIABLES
dc.subjectEXPORTS
dc.subjectEXTERNAL SHOCKS
dc.subjectFARMS
dc.subjectFINANCIAL DEPTH
dc.subjectFINANCIAL MARKETS
dc.subjectFISCAL POLICY
dc.subjectFOOD CONSUMPTION
dc.subjectGDP
dc.subjectGENERAL EQUILIBRIUM MODEL
dc.subjectGROWTH RATES
dc.subjectHISTORICAL DATA
dc.subjectHUMAN CAPITAL
dc.subjectIMPORTS
dc.subjectINCOME
dc.subjectINDUSTRIAL ECONOMIES
dc.subjectINFLATION
dc.subjectINFLATION RATE
dc.subjectINSURANCE
dc.subjectINSURANCE MARKETS
dc.subjectINSURANCE PREMIUMS
dc.subjectINVERSE RELATIONSHIP
dc.subjectM2
dc.subjectMACROECONOMIC POLICIES
dc.subjectMACROECONOMIC VARIABLES
dc.subjectNEGATIVE EFFECT
dc.subjectNEGATIVE IMPACT
dc.subjectNET EXPORTS
dc.subjectNORMAL DISTRIBUTION
dc.subject0 HYPOTHESIS
dc.subjectPER CAPITA CONSUMPTION
dc.subjectPER CAPITA CONSUMPTION GROWTH
dc.subjectPER CAPITA INCOME
dc.subjectPOLICY RESEARCH
dc.subjectPOSITIVE ROLE
dc.subjectPRECIPITATION
dc.subjectPRIVATE CONSUMPTION
dc.subjectPUBLIC CONSUMPTION
dc.subjectPUBLIC EXPENDITURES
dc.subjectPUBLIC GOODS
dc.subjectPUBLIC INVESTMENT
dc.subjectPUBLIC SECTOR
dc.subjectRISK AVERSION
dc.subjectRISK MANAGEMENT
dc.subjectSMALL BUSINESS
dc.subjectTAX REVENUES
dc.subjectTERMS OF TRADE
dc.subjectTOTAL CONSUMPTION
dc.subjectTRADE SHOCKS
dc.subjectUTILITY FUNCTION
dc.titleHigh Consumption Volatility : The Impact of Natural Disasters?en
dspace.entity.typePublication
okr.crossref.titleHigh Consumption Volatility: The Impact of Natural Disasters?
okr.date.disclosure2003-01-31
okr.date.doiregistration2025-04-10T10:50:46.707546Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2003/01/2128868/high-consumption-volatility-impact-natural-disasters
okr.globalpracticeMacroeconomics and Fiscal Management
okr.globalpracticePoverty
okr.globalpracticeFinance and Markets
okr.globalpracticeHealth, Nutrition, and Population
okr.guid880931468769133698
okr.identifier.doi10.1596/1813-9450-2962
okr.identifier.externaldocumentum000094946_03020404041019
okr.identifier.internaldocumentum2128868
okr.identifier.reportWPS2962
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2003/02/15/000094946_03020404041019/Rendered/PDF/multi0page.pdfen
okr.region.administrativeLatin America & Caribbean
okr.topicEconomic Theory and Research
okr.topicFinance and Financial Sector Development::Financial Intermediation
okr.topicMacroeconomics and Economic Growth::Consumption
okr.topicEnvironmental Economics and Policies
okr.topicHealth, Nutrition and Population::Public Health Promotion
okr.topicPoverty Reduction::Inequality
okr.unitEconomic Policy Sector Unit, Latin America and the Caribbean Region
okr.volume1
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
Files
Original bundle
Now showing 1 - 2 of 2
Thumbnail Image
Name:
multi0page.pdf
Size:
1.56 MB
Format:
Adobe Portable Document Format
Download
No Thumbnail Available
Name:
multi0page.txt
Size:
84.98 KB
Format:
Plain Text
Download
License bundle
Now showing 1 - 1 of 1
No Thumbnail Available
Name:
license.txt
Size:
1.71 KB
Format:
Plain Text
Description:
Download
Collections
Policy Research Working Papers