Template-Type: ReDIF-Paper 1.0



Author-Name: Espen Villanger 

Title: The effects of disasters on income mobility: Bootstrap inference and measurement error simulations

Abstract: We evaluate the impact of disasters on income mobility by drawing on "natural experiments". While the poor have a much higher probability of remaining poor when entering a crisis compared to normal times, there is also a negative effect in the year after. Richer households seem to be unaffected. A simple bootstrap method is proposed to facilitate statistical inference for mobility matrices. Also, we simulate measurement error to illustrate its magnitude on these matrices. Small errors induce a substantial downward bias of the probability of remaining poor, while comp arisons across states seem more robust, which is promising for impact analysis.



Length: 40 pages

Creation-Date: 2003

File-URL: https://www.cmi.no/publications/file/1560-the-effects-of-disasters-on-income-mobility.pdf

File-Format: Application/pdf

Number: WP 2003:6

Classification-JEL: 

Keywords: Income mobility

Effects of disasters

Bootstrap

Measurement error

Simulations

Natural experiments

Control group

Treatment group

Poverty

Handle: RePEc:chm:wpaper:wp2003-6