Breisinger, Clemens Ecker, Olivier Thiele, Rainer Wiebelt, Manfred
Year of Publication:
Kiel Working Paper No. 1758
Kiel Institute for the World Economy (IfW), Kiel
Combining a Dynamic Computable General Equilibrium (DCGE) model of the Yemeni economy with a microsimulation model that captures the link between changes in household incomes and changes in nutrition status, this paper provides a quantitative assessment of the agricultural, economy-wide, and nutritional impacts of the 2008 Hadramout flash flood in Yemen. The model simulations point to strong and persistent negative effects on agricultural value added, farm household incomes and nutrition among farmers in the region most severely affected by the flood. Regional spillover effects lead to temporary increases in hunger and significant cumulative income losses even in other regions where the flood has no direct impact.