Details
| Original language | English |
|---|---|
| Pages (from-to) | 117-138 |
| Number of pages | 22 |
| Journal | Economic Analysis and Policy |
| Volume | 65 |
| Early online date | 28 Nov 2019 |
| Publication status | Published - Mar 2020 |
Abstract
Analysis of rural vulnerability to weather shocks requires an accurate exposure record. Both self-reported and weather data records have been used with potential biases. We are the first to evaluate these biases by constructing two comparable records: self-reported weather shocks from a rural household panel dataset and measured weather shocks from weather data. Despite their positive relationship and similar average welfare effects, the two records display a large discrepancy. Being endogenous, the self-reported record introduces the attenuation bias in analysing non-farm labour allocation in response to shocks. We suggest to instrument the self-reported shock with the measured shock for better analytical quality.
Keywords
- Non-farm diversification, Rural households, Self-reported biases, Vietnam, Weather shocks
ASJC Scopus subject areas
- Economics, Econometrics and Finance(all)
- Economics and Econometrics
- Economics, Econometrics and Finance(all)
- Economics, Econometrics and Finance (miscellaneous)
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In: Economic Analysis and Policy, Vol. 65, 03.2020, p. 117-138.
Research output: Contribution to journal › Article › Research › peer review
}
TY - JOUR
T1 - Exposure to weather shocks: A comparison between self-reported record and extreme weather data
AU - Nguyen, Giang
AU - Nguyen, Trung Thanh
N1 - Funding information: We would like to thank the Central Institute for Economic Management (CIEM) for providing us with the household survey data, the Ministry of Agriculture and Rural Development (Vietnam) for providing us with the weather data, and Unisys Weather ( http://weather.unisys.com/) for the typhoon tract records. Giang Nguyen would also like to thank the Australian Government for awarding her a scholarship. The constructive comments from two anonymous referees are highly appreciated.
PY - 2020/3
Y1 - 2020/3
N2 - Analysis of rural vulnerability to weather shocks requires an accurate exposure record. Both self-reported and weather data records have been used with potential biases. We are the first to evaluate these biases by constructing two comparable records: self-reported weather shocks from a rural household panel dataset and measured weather shocks from weather data. Despite their positive relationship and similar average welfare effects, the two records display a large discrepancy. Being endogenous, the self-reported record introduces the attenuation bias in analysing non-farm labour allocation in response to shocks. We suggest to instrument the self-reported shock with the measured shock for better analytical quality.
AB - Analysis of rural vulnerability to weather shocks requires an accurate exposure record. Both self-reported and weather data records have been used with potential biases. We are the first to evaluate these biases by constructing two comparable records: self-reported weather shocks from a rural household panel dataset and measured weather shocks from weather data. Despite their positive relationship and similar average welfare effects, the two records display a large discrepancy. Being endogenous, the self-reported record introduces the attenuation bias in analysing non-farm labour allocation in response to shocks. We suggest to instrument the self-reported shock with the measured shock for better analytical quality.
KW - Non-farm diversification
KW - Rural households
KW - Self-reported biases
KW - Vietnam
KW - Weather shocks
UR - http://www.scopus.com/inward/record.url?scp=85075998702&partnerID=8YFLogxK
U2 - 10.1016/j.eap.2019.11.009
DO - 10.1016/j.eap.2019.11.009
M3 - Article
AN - SCOPUS:85075998702
VL - 65
SP - 117
EP - 138
JO - Economic Analysis and Policy
JF - Economic Analysis and Policy
SN - 0313-5926
ER -