Edited by Robert E.B. Lucas
Chapter 14: Economic consequences of conflict and environmental displacement
AbstractIn recent years, conflicts and natural disasters have displaced scores of people. Yet, the economic consequences of displacement are seldom studied. Identification challenges pose important limitations in drawing causal inference in this field of study. In light of recent advances in the literature, we propose a conceptual framework and discuss plausible identification strategies. Next, we review the relevant literature and set the conceptual framework in motion to analyze the impact of conflict in Bosnia Herzegovina and floods in Pakistan on household welfare. We conclude by reviewing and proposing policy actions that could effectively expose and address constraints faced by displaced populations at their destination.
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