Disaster aid targeting and self-reporting bias: Natural experimental evidence from the Philippines

Abstract

Aid from the government can play a critical role as a risk-coping device in a post-disaster situation if the recipients are properly targeted. We analyze the accuracy of disaster aid targeting and self-reporting bias in disaster damage and aid receipt by combining (i) satellite images (objective information on flood damage), (ii) administrative records (objective information on post-flood aid receipt), and (iii) unique survey data (self-reported information on damage assessment and aid receipt) on a large-scale flooding in 2012 in the Philippines. We find that damage is over-reported while aid receipt is under-reported, and as a result, the estimated targeting accuracy based on self-reported information is substantially downward-biased.