Natural disasters are expected exacerbate poverty and inequality, but little evidence exists to support the impact at household level. This article examines the effect of natural disasters on household income, expenditure, poverty and inequality using the Vietnam Household Living Standard
Survey in 2008. The effects of a natural disaster on household income and expenditure, corrected for fixed effects and potential endogeneity bias, are estimated at 6.9% and 7.1% declines in Vietnamese household per capita income and expenditure, respectively. Natural disasters demonstrably
worsen expenditure poverty and inequality in Vietnam, and thus should be considered as a factor in designing poverty alleviation policies.
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Document Type: Research Article
Department of Economics, Macquarie University, Sydney, Australia
Tasmanian School of Business and Economics, University of Tasmania, Hobart, 7001, Australia
National Economics University, Hanoi, Vietnam
Publication date: 2014-05-24
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