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

Stein, W. and Weisser, R. 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. ISSN 0258-6770 (Forthcoming)

[img] Text
1545358_Weisser.pdf - Post-print
Restricted to Repository staff only

Download (683kB)

Abstract

This paper investigates how witnessing adverse weather events affects individuals’ perception and consequently their subjective well-being. To identify events that have been witnessed, i.e., tangential exposure to a weather shock, we link satellite-based data on flooding 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 politicoeconomic 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.
Publisher: Oxford University Press
Date: 11 May 2022
ISSN: 0258-6770
Identifiers:
NumberType
1545358Other
Divisions: Schools > Nottingham Business School
Record created by: Jonathan Gallacher
Date Added: 16 May 2022 11:14
Last Modified: 16 May 2022 11:14
URI: http://irep.ntu.ac.uk/id/eprint/46322

Actions (login required)

Edit View Edit View

Views

Views per month over past year

Downloads

Downloads per month over past year