EconPapers    
Economics at your fingertips  
 

Hidden Costs of War: Evidence from Nepal’s Maoist Insurgency

Haikun Zhan ()
Additional contact information
Haikun Zhan: University of Auckland

No 375, HiCN Working Papers from Households in Conflict Network

Abstract: This paper uses a unique longitudinal dataset to examine the costly behavioral changes adopted by agricultural households in response to the 1996–2006 Maoist insurgency in Nepal. After the war onset, agricultural households that were exposed to high conflict intensity expand their crop cultivation choices—from mainly cereals to cereals and non-cereals—in order to avoid the Maoist tax on cereals. A one standard deviation increase in conflict exposure induced the average household to expand its number of non-cereal crops from 4.36 to 6.01, a 37.84% increase, while continuing to cultivate the same number of cereal crops. This behavioral change exposed households to greater income risk because the value of non-cereal crops is much more volatile. A risk-averse agricultural household would, as a consequence, suffer a 16.35% decline in welfare.

Pages: 49 pages
Date: 2022-11
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://hicn.org/wp-content/uploads/sites/10/2022/11/HiCN-WP-375.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hic:wpaper:375

Access Statistics for this paper

More papers in HiCN Working Papers from Households in Conflict Network
Bibliographic data for series maintained by Tilman Brück () and () and () and ().

 
Page updated 2023-02-02
Handle: RePEc:hic:wpaper:375