The effect of earthquakes on food consumption and prices: Evidence from a natural experiment design
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Abstract
Do disasters reduce food consumption and increase prices? In recent years, many countries have faced a growing wave of disasters, alongside governments’ growing interest in quantifying their impact. Given the difficulty of collecting data in disaster-hit areas, little is known about how a disaster affects households in the short term. In this study, we use an experimental design to study food consumption and prices collected following an earthquake. Using a difference-in-differences approach, we evaluate the effect of the earthquake and found: 1) strong decreases in food consumption at the intensive and extensive margin; 2) the distribution of food baskets helped to mitigate this effect, suggesting that disaster recovery funds are key to alleviate food insecurity after a disaster; 3) road disruptions, as hazard impacts, might exacerbate the reduction in food consumption.
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