Firm-network characteristics and economic robustness to natural disasters

Fanny Henriet, Stephane Hallegatte and Lionel Tabourier

Journal of Economic Dynamics and Control, 2012, vol. 36, issue 1, 150-167

Abstract: This article proposes a theoretical framework to investigate economic robustness to exogenous shocks such as natural disasters. It is based on a dynamic model that represents a regional economy as a network of production units through the disaggregation of sector-scale input–output tables. Results suggest that disaster-related output losses depend on direct losses heterogeneity and on the economic network structure. Two aggregate indexes – concentration and clustering – appear as important drivers of economic robustness, offering opportunities for robustness-enhancing strategies. Modern industrial organization seems to reduce short-term robustness in a trade-off against higher efficiency in normal times.

Keywords: Natural disasters; Economic impacts; Economic network (search for similar items in EconPapers)
JEL-codes: C63 D85 L14 Q54 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (61)

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Related works:
Working Paper: Firm-network characteristics and economic robustness to natural disasters (2012)
Working Paper: Firm-network characteristics and economic robustness to natural disasters (2012)
Working Paper: Firm-Network Characteristics and Economic Robustness to Natural Disasters (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:dyncon:v:36:y:2012:i:1:p:150-167

DOI: 10.1016/j.jedc.2011.10.001

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