The Tempest: Natural Disasters, Early Shocks and Children's Short- and Long-Run Development

Eva Deuchert and Christina Felfe

No 4168, CESifo Working Paper Series from CESifo

Abstract: Economic theory predicts that adverse shocks during early childhood have detrimental short- and long-run consequences for children’s development. We examine this hypothesis by analyzing the short-and long-run effects on children’s health and education of a specific shock: housing damages caused by a super typhoon. Our results reveal negative effects on children’s education - not, however, on health. The effects on children’s education aggravate over time. Empirical evidence indicates that the main underlying channel is a shock on families’ wealth.

Keywords: child development; natural disaster; wealth shock (search for similar items in EconPapers)
JEL-codes: I14 I24 Q54 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (2)

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