The Effect of Rainfall Variation on Agricultural Households: Evidence from Mexico
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This paper presents results of the rainfall impact on agricultural production and net
income for rural households in Mexico using a two-year panel data set. We construct
a metric on rainfall variation using historical data from weather stations across
Mexico. The relationship between our rainfall measure and agricultural production
indicates a consistent negative effect on maize production, specially for rain-fed and
small farmers. Moreover, there is mixed evidence for non-maize crops production and
non-significant rainfall impact for household’s net income.