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Prepared by Dmitry Plotnikov.
These natural disasters include floods, storms, landslides and extreme temperatures.
Burke, Hsiang and Miguel (2015) conduct many robustness checks and show that the estimates of the global response function f1 are indeed robust. These include including lags of growth on the right-hand side, using a different data source, estimating the equation on different subsamples etc. See the paper for details.
This setup can be made more realistic if one incorporates dispersion of skills across the two activities. This will eliminate possibility of zero shares of services or agriculture in GDP.
The data for Nicaragua are available only starting in 1994. The series for Nicaragua are normalized to 100 times the average of other countries in 1994.