Aggregate Impacts of Natural and Man-made Disasters: A quantitative comparison
In recent decades, the world has faced an increasing number of natural and man-made disasters. Such disasters include tsunamis, earthquakes, the current ongoing financial crisis, terrorism, riots, and wars. These disasters generate tremendous social and economic costs, especially for the poor in low income economies. This paper assesses and compares the impacts of various natural and man-made disasters quantitatively. We carefully construct cross-country panel data of 189 countries within the range between 1968 to 2001 on a wide variety of natural disasters such as hydro-meteorological, geophysical, climatological, technological and biological disasters as well as man-made disasters such as economic crises, civil conflicts and wars. The paper employs this unique panel dataset to estimate econometric models which enable us to quantify and compare the impacts of different natural and man-made disasters on welfare as captured by per capita consumption. According to our estimation results, in the short term, natural disasters generate the largest negative welfare impacts which are followed by wars and economic disasters. Intriguingly, in the long term, natural disasters and wars have positive impacts on per capita GDP growth. Wars affect large economies more than small economies while natural disasters affect small economies disproportionately.
|Date of creation:||Mar 2011|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.rieti.go.jp/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Mark Skidmore & Hideki Toya, 2002. "Do Natural Disasters Promote Long-Run Growth?," Economic Inquiry, Western Economic Association International, vol. 40(4), pages 664-687, October.
- Sun Jin Kang & Yasuyuki Sawada, 2003.
"Credit Crunches and Household Welfare: The Case of the Korean Financial Crisis,"
CIRJE-F-234, CIRJE, Faculty of Economics, University of Tokyo.
- Sung Jin Kang & Yasuyuki Sawada, 2008. "Credit Crunch And Household Welfare, The Case Of The Korean Financial Crisis," The Japanese Economic Review, Japanese Economic Association, vol. 59(4), pages 438-458.
- Mark Skidmore & Hideki Toya, 2005.
"Economic Development and the Impacts of Natural Disasters,"
05-04, UW-Whitewater, Department of Economics.
- Toya, Hideki & Skidmore, Mark, 2007. "Economic development and the impacts of natural disasters," Economics Letters, Elsevier, vol. 94(1), pages 20-25, January.
- Reinhart, Carmen & Kaminsky, Graciela, 1999.
"The twin crises: The causes of banking and balance of payments problems,"
14081, University Library of Munich, Germany.
- Carmen M. Reinhart & Graciela L. Kaminsky, 1999. "The Twin Crises: The Causes of Banking and Balance-of-Payments Problems," American Economic Review, American Economic Association, vol. 89(3), pages 473-500, June.
- Reinhart, Carmen & Kaminsky, Graciela, 2000.
"Las crisis gemelas: las causas de los problemas bancarios y de balanza de pagos
[The twin crises: Te causes of banking and balance of payments problems]," MPRA Paper 13842, University Library of Munich, Germany.
- Graciela L. Kaminsky & Carmen M. Reinhart, 1996. "The twin crises: the causes of banking and balance-of-payments problems," International Finance Discussion Papers 544, Board of Governors of the Federal Reserve System (U.S.).
- S. Brock Blomberg & Gregory D. Hess & Athanasios Orphanides, 2004.
"The Macroeconomic Consequences of Terrorism,"
CESifo Working Paper Series
1151, CESifo Group Munich.
- Ravallion, Martin & Lokshin, Michael, 2005. "Lasting local impacts of an economywide crisis," Policy Research Working Paper Series 3503, The World Bank.
- Stéphane Hallegatte & Valentin Przyluski, 2010. "The Economics of Natural Disasters," CESifo Forum, Ifo Institute for Economic Research at the University of Munich, vol. 11(2), pages 14-24, 07.
- Peter R. Fallon & Robert E. B. Lucas, 2000.
"The Impact of Financial Crises on Labor Markets, Household Incomes and Poverty: A Review of Evidence,"
Boston University - Institute for Economic Development
103, Boston University, Institute for Economic Development.
- Peter R. Fallon & Robert E. B. Lucas, 2002. "The Impact of Financial Crises on Labor Markets, Household Incomes, and Poverty: A Review of Evidence," World Bank Research Observer, World Bank Group, vol. 17(1), pages 21-45.
- Robert J. Barro, 2007.
"Rare Disasters, Asset Prices, and Welfare Costs,"
NBER Working Papers
13690, National Bureau of Economic Research, Inc.
- Carmen M. Reinhart, 2010. "This Time is Different Chartbook: Country Histories on Debt, Default, and Financial Crises," NBER Working Papers 15815, National Bureau of Economic Research, Inc.
When requesting a correction, please mention this item's handle: RePEc:eti:dpaper:11023. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (NUKATANI Sorahiko)
If references are entirely missing, you can add them using this form.