Medium-run local economic effects of a major earthquake

Paula Aguirre, Kenzo Asahi, Diego Diaz-Rioseco, Ignacio Riveros and Rodrigo Valdés

Journal of Economic Geography, 2023, vol. 23, issue 2, 277-297

Abstract: Existing research is inconclusive regarding the longer-term economic effects of earthquakes. We examine the medium-run impacts of the 2010 earthquake in Chile, the sixth-largest ever recorded, using value-added tax collection as a proxy for economic activity at the municipal level and a measure of local ground-shaking intensity. We find that the affected municipalities suffered a relevant and persistent drop in their economic activity of about 10%, 8–9 years after the event. We discuss the plausibility of the assumption of conditional parallel trends and show that the overall results are robust to using alternative estimation methods.

Keywords: Earthquake; economic impact; local economies (search for similar items in EconPapers)
JEL-codes: O54 Q51 Q54 R11 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (1)

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