We aim to investigate the role of insurance in business recovery following the devastating Christchurch earthquake in February, 22nd, 2011. We analyze data from two business surveys conducted after the earthquake to examine how insurance affected business operation in the aftermath of the earthquake both in the short-term and longer-term. For the short-term analysis, we use a combination of propensity score matching (PSM) and linear probability model (LPM) to analyze the data. We first estimate the propensity scores for insurance take-up of each firm conditional on the firm’s individual characteristics. Stratification based on the estimated propensity scores is used to match the treated (insured) and the control (uninsured) firms. We then estimate the probability of firms’ continuing operations with a set of control variables to account for the level of damage and disruption caused by the quake in each stratum. We find little evidence of any beneficial effect of insurance coverage on business continuity in the short-run. For the longer-term analysis, we analyze the available survey data using logistic regression. The result suggests that business interruption insurance significantly promotes increased level of long-term productivity for surviving firms following the earthquake.
1. PHIL TWYFORD to the Minister for State Owned Enterprises: What reports, if any, has he received about KiwiRail's plans to get rid of electric locomotives on the North Island Main Trunk Line and replace them with diesel locomotives?
2. JULIE ANNE GENTER to the Minister for State Owned Enterprises: Is he considering replacing the electric locomotives with diesel locomotives on the Main Trunk Line, and would this mean removing electrification on that line.
3. DAVID BENNETT to the Minister of Finance: What reports has he received on the New Zealand economy and business sentiment?
4. Rt Hon WINSTON PETERS to the Minister for Primary Industries: Does he believe the Dairy Industry Restructuring Amendment Act 2012 has achieved "a stable, permanent capital base for the Co-operative, secures our future and will support progress with our strategy to grow volumes and value"; if so, why?
5. MATT DOOCEY to the Minister for Social Development: What announcements has she made to improve statutory child protection in New Zealand?
6. Dr DAVID CLARK to the Minister for Economic Development: What lessons, if any, on regional economic development has he drawn from his recent ministerial visits to Northland?
7. CATHERINE DELAHUNTY to the Minister for State Owned Enterprises: Will he stop any further work on dairy conversions by Landcorp, in light of the drop in the dairy price yesterday and concerns about the impact that those conversions will have on water quality; if not, why not?
8. MARK MITCHELL to the Minister of Trade: What recent steps has the Government taken to promote and support New Zealand exporters?
9. Hon DAVID PARKER to the Minister of Trade: What monetary and other assistance was provided by the New Zealand Government in support of his bid for appointment as Director-General of the World Trade Organisation?
10. BARBARA KURIGER to the Minister for Small Business: How are small businesses benefiting from the Better for Business - Result 9 Programme?
11. POTO WILLIAMS to the Minister for Social Housing: Why are Christchurch's social housing organisations facing increased homelessness four years after the last major earthquake?
12. MAHESH BINDRA to the Minister of Corrections: Does he stand by all his answers given to the House on 1 April 2015?
