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Gone with the Storm: Rainfall Shocks and Household Wellbeing in Guatemala

Author

Listed:
  • Javier E. Baez
  • Leonardo Lucchetti
  • Maria E. Genoni
  • Mateo Salazar
Abstract
This paper identifies the negative consequences of the strongest tropical storm ever to strike Guatemala on household welfare. Per capita consumption fell in urban areas, raising poverty substantially. Households cut back on food consumption and basic durables, and attempted to cope by increasing their adult and child labour supply. The mechanisms at play include the intensity of the shock, food prices and the timing of Agatha with respect to local harvest cycles. The results are robust to placebo treatments, migration and measurement error, and partly explain the increase in poverty in the country previously attributed solely to the collateral effects of the global financial crisis.

Suggested Citation

  • 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.
    • Handle: RePEc:taf:jdevst:v:53:y:2017:i:8:p:1253-1271
    DOI: 10.1080/00220388.2016.1224853
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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