Vulnerability assessment using composite indices provides critical information for the policymakers on why certain regions are impacted more than the others. Several researchers have assessed the vulnerability to hazard in diverse spatial and environmental settings, however, not many studies have assessed the vulnerability to flood hazards in Bihar, where flooding is a perennial event.

Employing a multilevel model, this paper demonstrates the importance of contextual effects, over and above the compositional effects, in shaping the geographical pattern of agricultural diversification towards high value crops. The results reveal that, besides household-level differences, the contextual effects of higher geographical levels, especially states and villages, explain significant variation in land-use under high value crops, but these do not apply to all types of crops and farm classes in a similar manner.

Drought is an important downside risk in Indian agriculture; and the spatial differences in its intensity and probability of occurrence are considerable. To develop strategies to manage the risk of drought, and to coordinate and implement these strategies, it is essential to understand the variation in drought risk across geographical or administrative levels. This paper, using a multilevel modeling approach, decomposes the variation in drought risk across states, regions, districts, villages and households, and finds it disproportionately distributed.