Estimating the Effects of West Sumatra Public Asset Insurance Program on Short-Term Recovery after the September 2009 Earthquake

Paul Raschky

No DP-2013-35, Working Papers from Economic Research Institute for ASEAN and East Asia (ERIA)

Abstract: This paper analyses the effect of the West Sumatra public asset insurance program on short-term economic recovery after the September 2009 West Sumatra Earthquake. We use satellite data on yearly differences in nighttimelight intensity as a proxy for economic activity, to investigate the effect of the earthquake damage on overall luminosity in 2009 and the progress in recovery in the year 2010. Our identification strategy applies a regression discontinuity (RD) approach that exploits the discontinuity in insurance coverage at the provincial border. We find a small, statistically significant and positive effect of the public insurance scheme on the short-term recovery in West Sumatra.

Keywords: Natural Disaster Exposure; Economic Activity; Spatial Analysis; Natural Disaster Insurance. (search for similar items in EconPapers)
JEL-codes: G22 Q54 R11 (search for similar items in EconPapers)
Pages: 29 pages.
Date: 2013-12
New Economics Papers: this item is included in nep-ias
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Citations: View citations in EconPapers (1)

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