Browsing by Author "Valdes, Rodrigo O."

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    Medium-run local economic effects of a major earthquake
    (OXFORD UNIV PRESS, 2022) Aguirre, Paula; Asahi, Kenzo; Diaz-Rioseco, Diego; Riveros, Ignacio; Valdes, Rodrigo O.; CEDEUS (Chile)
    Existing research is inconclusive regarding the longer-term economic effects of earthquakes. We examine the medium-run impacts of the 2010 earthquake in Chile, the sixth-largest ever recorded, using value-added tax collection as a proxy for economic activity at the municipal level and a measure of local ground-shaking intensity. We find that the affected municipalities suffered a relevant and persistent drop in their economic activity of about 10%, 8-9 years after the event. We discuss the plausibility of the assumption of conditional parallel trends and show that the overall results are robust to using alternative estimation methods.