The%20Economics%20of%20Natural%20Disasters%3A%20A%20Survey

Working Papers

The Economics of Natural Disasters: A Survey


CODE: IDB-WP-124
AUTHOR(s): Cavallo, Eduardo A. , Noy, Ilan
PUBLISHED: December 2009
LANGUAGE: English
RELATED TOPICS: Poverty Reduction and Labor
DOWNLOAD FILE IN: English

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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