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The Economics of Natural Disasters - A Survey

  • Eduardo Cavallo

    ()

    (Research Department, Inter-American Development Bank)

  • Ilan Noy

    ()

    (Department of Economics, University of Hawaii at Manoa)

Catastrophes caused by natural disasters are by no means new, yet our evolving understanding regarding their relevance to economic development and growth is still at its infancy. In order to facilitate further necessary research on this topic, we summarize the state of the economic literature that examines the aggregate impact of disasters. We review the main disaster data sources available, discuss the determinants of the direct effects of disasters, and distinguish between the short- and long-run indirect effects. After reviewing these literatures, we examine some of the relevant policy questions, and follow up with projections about the future likelihood of disasters, while paying particular attention to the projected climate change. We end by identifying several significant gaps in this literature.

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File URL: http://www.economics.hawaii.edu/research/workingpapers/WP_09-19.pdf
File Function: First version, 2009
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Paper provided by University of Hawaii at Manoa, Department of Economics in its series Working Papers with number 200919.

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Length: 48 pages
Date of creation: Nov 2009
Date of revision:
Handle: RePEc:hai:wpaper:200919
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