@article{Malevolti:321172,
      recid = {321172},
      author = {Malevolti, Giulia},
      title = {Can weather shocks give rise to a poverty trap? Evidence  from Nigeria},
      address = {2022-04},
      number = {2450-2022-1085},
      pages = {24},
      year = {2022},
      abstract = {As extreme weather events are becoming more frequent, the  chronic poor, being overly exposed to these shocks, risk  suffering the highest price. The 2012 flood in Nigeria was  the worst in 40 years and hit more than 3 million people.  Using nationally representative panel data from LSMS  project, I study households’ asset dynamics over about a  decade. I find that households hit by the flood converge to  multiple equilibria consistent with the poverty trap  narrative. In particular, households whose assets fell  below the threshold converge to a low-level equilibrium  point, whereas better endowed households converge to a high  steady state. This is consistent across several empirical  methods, ranging from parametric to non-parametric methods,  as well as panel threshold estimation. Robustness checks  further examine the validity of the finding, testing  different asset indexes and flood definitions, as well as  controlling for conflict-related events. Identifying a  poverty trap is crucially helpful for designing poverty  alleviation policies and fostering a country’s  development.},
      url = {http://ageconsearch.umn.edu/record/321172},
      doi = {https://doi.org/10.22004/ag.econ.321172},
}