Economic impact of frost and financing of replanting in Sinaloa.
Abstract
We calculate the economic damages produced by the February 2011 frost in the northwest state of Sinaloa in Mexico. We estimated the initial impact on the agricultural sector employing time series techniques, and then we introduced such estimation into a short run general equilibrium model for the Sinaloa economy. We obtained the effects on the economic activity of the main sectors, personal income and households’ consumption. Finally, the economic effects of two public policies to deal with the climate shock are evaluated: corn replanting financed with federal governments resources and corn replanting financed with states resources.
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