Saturday, August 23, 2014

Negative economic impact of hurricanes


Full paper here

Excerpt from WSJ:
What they found is that the popular idea that disasters stimulate growth and economic losses are made up quickly isn’t true. Storms cause a long-running reduction in per capita real gross domestic product.
The researchers found if during the course of a year each location in a country experienced maximum cyclone wind speeds of 9.4 meters per second (m/s) above average (about an extra 21 miles per hour), this would result in national income being 3.6% lower in 20 years than it would have been without the storm.

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