Exposure to weather shocks: A comparison between self-reported record and extreme weather data

Giang Nguyen and Trung Thanh Nguyen

Economic Analysis and Policy, 2020, vol. 65, issue C, 117-138

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: Rural households; Non-farm diversification; Weather shocks; Self-reported biases; Vietnam (search for similar items in EconPapers)
JEL-codes: D01 O12 Q12 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (14)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecanpo:v:65:y:2020:i:c:p:117-138

DOI: 10.1016/j.eap.2019.11.009

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