Ilan Noy
The macroeconomic consequences of disasters
University of Hawai?i at M?noa|University of Hawaii System
natural disasters statistically observable adverse impact macroeconomy shortrun costlier events lead pronounced slowdowns production yet interestingly developing countries smaller economies face much larger output declines following disaster similar relative magnitude developed countries bigger economies close study determinants adverse macroeconomic output costs reveals several interesting patterns countries higher literacy rate better institutions higher per capita income higher degree openness trade higher levels government spending better able withstand initial disaster shock prevent spillovers macroeconomy suggest increased ability mobilize resources reconstruction financial conditions also seem importance countries foreign exchange reserves higher levels domestic credit lessopen capital accounts appear robust better able endure natural disasters less adverse spillover domestic production