************************************************************************************************** *** This do file creates the replication results for *** The Political Economy of Natural Disaster Damage */ *** Eric Neumayer (LSE), Thomas Pluemper (U of Essex) and Fabian Barthel (LSE) */ *** */ *** Published in: Global Environmental Change, 24, 2014, pp. 8-19 */ ************************************************************************************************** ************************************************************************************************** /* Note: You have to change "local DIR" to the directory you copy the original stata files contained */ /* in the zip file and then run the do file. /* You must have Stata version 12 or higher installed */ ************************************************************************************************** */ version 11 drop _all clear matrix clear mata *********************************************************************************** local DIR = "C:\Research\Disasters\Munich Re\" /*change relative path to the directory where the files are located */ cd "`DIR'" *********************************************************************************** use "Article for GEC (political economy of disaster damage)", clear set seed 10101 ** Main estimations * Quakes label var lnprop_t_gs32_magnitude "quake propensity" xi: sqreg lndis_loss_overall_usd1995 lnt_gs32_magnitude lnprop_t_gs32_magnitude lngdppc lngdp if dis_subevent=="gs", quantile(.05 .25 .5 .75 .95) reps(100) test [q05=q25=q50=q75=q95]: lnprop_t_gs32_magnitude test [q25=q75]: lnprop_t_gs32_magnitude quietly xi: bsqreg lndis_loss_overall_usd1995 lnt_gs32_magnitude lnprop_t_gs32_magnitude lngdppc lngdp if dis_subevent=="gs", quantile(.5) reps(100) grqreg lnprop_t_gs32_magnitude, ci seed(10101) level(90) save(quake propensity effect) graph save quake_prop, replace * Tropical Cyclones label var lnprop_t3_top_wind_speed "cyclone propensity" xi: sqreg lndis_loss_overall_usd1995 lnt3_top_wind_speed lnprop_t3_top_wind_speed lngdppc lngdp if dis_subevent=="tc", quantile(.05 .25 .5 .75 .95) reps(100) test [q05=q25=q50=q75=q95]: lnprop_t3_top_wind_speed test [q25=q75]: lnprop_t3_top_wind_speed quietly xi: bsqreg lndis_loss_overall_usd1995 lnt3_top_wind_speed lnprop_t3_top_wind_speed lngdppc lngdp if dis_subevent=="tc", quantile(.5) reps(100) grqreg lnprop_t3_top_wind_speed, ci seed(10101) level(90) save(cyclone propensity effect) graph save cyclone_prop, replace * Floods label var lnprop_sum_precip_abs_pos "flood propensity" xi: sqreg lndis_loss_overall_usd1995 lnsum_precip_abs_pos lnprop_sum_precip_abs_pos lngdppc lngdp if dis_subevent=="gf", quantile(.05 .25 .5 .75 .95) reps(100) test [q05=q25=q50=q75=q95]: lnprop_sum_precip_abs_pos test [q25=q75]: lnprop_sum_precip_abs_pos quietly xi: bsqreg lndis_loss_overall_usd1995 lnsum_precip_abs_pos lnprop_sum_precip_abs_pos lngdppc lngdp if dis_subevent=="gf", quantile(.5) reps(100) grqreg lnprop_sum_precip_abs_pos, ci seed(10101) level(90) save(flood propensity effect) graph save flood_prop, replace ** Include income group fixed effects and small island nation state dummy * Quakes xi: sqreg lndis_loss_overall_usd1995 lnt_gs32_magnitude lnprop_t_gs32_magnitude lngdppc lngdp inc_* small_island_state_wb insurance_penetration if dis_subevent=="gs", quantile(.05 .25 .5 .75 .95) reps(100) test [q05=q25=q50=q75=q95]: lnprop_t_gs32_magnitude quietly xi: bsqreg lndis_loss_overall_usd1995 lnt_gs32_magnitude lnprop_t_gs32_magnitude lngdppc lngdp inc_* small_island_state_wb insurance_penetration if dis_subevent=="gs", quantile(.5) reps(100) grqreg lnprop_t_gs32_magnitude, ci seed(10101) level(90) save(quake propensity effect) graph save quake_prop_incdums, replace * Tropical Cyclones xi: sqreg lndis_loss_overall_usd1995 lnt3_top_wind_speed lnprop_t3_top_wind_speed lngdppc lngdp inc_* small_island_state_wb insurance_penetration if dis_subevent=="tc", quantile(.05 .25 .5 .75 .95) reps(100) test [q05=q25=q50=q75=q95]: lnprop_t3_top_wind_speed quietly xi: bsqreg lndis_loss_overall_usd1995 lnt3_top_wind_speed lnprop_t3_top_wind_speed lngdppc lngdp inc_* small_island_state_wb insurance_penetration if dis_subevent=="tc", quantile(.5) reps(100) grqreg lnprop_t3_top_wind_speed, ci seed(10101) level(90) save(cyclone propensity effect) graph save cyclone_prop_incdums, replace * Floods xi: sqreg lndis_loss_overall_usd1995 lnsum_precip_abs_pos lnprop_sum_precip_abs_pos lngdppc lngdp inc_* small_island_state_wb insurance_penetration if dis_subevent=="gf", quantile(.05 .25 .5 .75 .95) reps(100) test [q05=q25=q50=q75=q95]: lnprop_sum_precip_abs_pos quietly xi: bsqreg lndis_loss_overall_usd1995 lnsum_precip_abs_pos lnprop_sum_precip_abs_pos lngdppc lngdp inc_* small_island_state_wb insurance_penetration if dis_subevent=="gf", quantile(.5) reps(100) grqreg lnprop_sum_precip_abs_pos, ci seed(10101) level(90) save(flood propensity effect) graph save flood_prop_incdums, replace ** Test for non-linear effect of GDP pc capture drop lngdppc_sq gen lngdppc_sq=lngdppc*lngdppc * Quakes xi: sqreg lndis_loss_overall_usd1995 lnt_gs32_magnitude lnprop_t_gs32_magnitude lngdppc lngdppc_sq lngdp if dis_subevent=="gs", quantile(.05 .25 .5 .75 .95) reps(100) * Tropical Cyclones xi: sqreg lndis_loss_overall_usd1995 lnt3_top_wind_speed lnprop_t3_top_wind_speed lngdppc lngdppc_sq lngdp if dis_subevent=="tc", quantile(.05 .25 .5 .75 .95) reps(100) * Floods xi: sqreg lndis_loss_overall_usd1995 lnsum_precip_abs_pos lnprop_sum_precip_abs_pos lngdppc lngdppc_sq lngdp if dis_subevent=="gf", quantile(.05 .25 .5 .75 .95) reps(100)