Direct shock experience vs. tangential shock exposure: indirect effects of flood shocks on well-being and preferences

Stein, W. and Weisser, R.A. ORCID: 0000-0002-1717-5697, 2022. Direct shock experience vs. tangential shock exposure: indirect effects of flood shocks on well-being and preferences. The World Bank Economic Review: lhac012. ISSN 0258-6770

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With extreme weather events on the rise, the question of how witnessing adverse weather events may affect individuals’ perception, and consequently their subjective well-being, gains in relevance. To identify events that have been witnessed, i.e., tangential exposure to a weather shock, satellite-based data on flooding is linked to an extensive household panel survey from rural Southeast Asia. Contrasting direct shock experience with tangential shock exposure, we find that mere proximity to a potentially adverse shock, without reporting any actual direct shock experience, could be sufficient to reduce subjective well-being. This effect is not only restricted to the present but can also impinge on expected future well-being dynamics. Eventually, such a persistent effect from witnessing a weather shock may have further politico-economic repercussions, for instance, by altering support for redistribution policies.

Item Type: Journal article
Publication Title: The World Bank Economic Review
Creators: Stein, W. and Weisser, R.A.
Publisher: Oxford University Press
Date: 31 August 2022
ISSN: 0258-6770
Rights: © The Author(s) 2022. Published by Oxford University Press on behalf of the International Bank for Reconstruction and Development / THE WORLD BANK. This is an Open Access article distributed under the terms of the Creative Commons Attribution-NonCommercial License (, which permits non-commercial re-use, distribution, and reproduction in any medium, provided the original work is properly cited. For commercial re-use, please contact
Divisions: Schools > Nottingham Business School
Record created by: Jonathan Gallacher
Date Added: 16 May 2022 11:14
Last Modified: 13 Oct 2022 15:43

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