Natural shocks and farm household behavior: The consequences of an earthquake in Pisco, Peru

van den Berg M.; Fort R. · Managing Risk in Agriculture: A Development Perspective (2023) · DOI: 10.1079/9781800622289.0017

Resumen

Natural disasters have indirect effects that may affect the victims for a substantial time after the direct impact. This chapter studies the impact of the Pisco earthquake on Peruvian cotton farmers more than a year after the earthquake hit. We fnd that incomes were only half of what they would have been without the earthquake. Damaged plots had not been recovered, and farmers seemed to cultivate less land and use lower amounts of inputs than they did before the earthquake. Risk aversion increased substantially, including for farmers who were not directly affected by the earthquake. However, preferences for insurance did not change. © CAB International 2023.