Severe weather shocks recurrently hit Malawi, and they adversely affect the incomes of many farm households as well as small businesses. With climate change, the frequency of extreme weather events is expected to increase further.

This paper combines data on weather shocks at the district level, monthly grain prices, and on wages in 82 retail markets in Ethiopia over 17 years to quantify the impact of drought on local prices and how this impact varies by month after harvest.