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The Economics of Natural Disasters: A Survey

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  • Cavallo, Eduardo A.
  • Noy, Ilan

Abstract

Natural disasters are by no means new, yet the evolving understanding of their relevance to economic development and growth is still in its infancy. This paper summarizes the state of the economic literature examining the aggregate impact of disasters. The paper reviews the main disaster data sources available, discusses the determinants of the direct effects of disasters, and distinguishes between short- and long-run indirect effects. The paper then examines some of the relevant policy questions and follows up with projections about the likelihood of future disasters. The paper ends by identifying several significant gaps in the literature.

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  • Cavallo, Eduardo A. & Noy, Ilan, 2009. "The Economics of Natural Disasters: A Survey," IDB Publications (Working Papers) 1664, Inter-American Development Bank.
    • Handle: RePEc:idb:brikps:1664
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    Keywords

    IDB-WP-124;

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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