Stocks refer to an existing level of, roads, bridges, etc.) However, a comparison with the effects of the major earthquake that struck Kobe, Japan on January 17, 1995, may provide some useful reference points. The results from the model confirm the important role of spatial externality in agents' decision-making and the process of recovery. Rather, the economic impact of the disaster is strongly influenced by the multitude of decisions made in the days and months following — decisions regarding whether to relocate an office to New Jersey and for how long, whether to lay off workers and how many, and whether to inject stimulus spending into the New York City economy and how much. As a freely accessible resource for the region, East Asia Forum relies on donations from those who believe in its importance. That is, the official estimate of direct losses in, some facilities like roads, bridges and harbor were, characteristics may reflect the nature of si, use it includes the real estate industry which lost a quite, rding to our estimates. and inventories of pro. The editors retain the right to refuse and edit comments at any time. The economic loss as a result of this earthquake is estimated to reach $200 billion. Furthermore, inclusions of indirect economic effects at the macro-/meso-scale would give a better indication of the total effects of catastrophic flooding. ... Toyoda (2008) estimated the indirect losses after the great Hanshin-Awaji (Kobe) earthquake in 1995 using questionnaires and statistical analyses of macro-economic data. These achievements are testimony to human resilience, but particular testimony to the resilience and capacity of the Japanese people — not only their remarkable capacity to face natural calamity stoically but the human capital, skills and organisational know-how they bring to dealing with it on a grand scale and with great efficiency. A careful statistical analysis of indirect losses using the gross regional product in the stricken area presents a new finding that the lost product and income in terms of estimated indirect losses are quite large and continue to arise for longer than 10 years, mounting to some 14 trillion yen (about US$0.13 trillion). While the first step in disaster economic risk management is the quantification of economic losses, modeling unexpected events by equilibrium-oriented economic models which assume gradual and incremental changes over time and uniform spatial impacts poses analytical. Some early papers concluded that the devastation wrought by the 1995 Kobe earthquake did not have any long-term impact on the Japanese economy, nor much impact on Kobe itself , though others were less sanguine about the disasters impact . were measured by accounting definition, while the ones of, Figure 2. Conventionally it is often told that “indirect damage is, that in every stage of disaster mitigation cycle suc, . Indirect Losses from Natural Disasters: Measurement and Myth. Based on actual macroeconomic data, d people. However, did the Kobe earthquake in 1995 indeed cause permanent losses to the economies In Case A, the economy suffers, rning to its baseline trend. A major complication and evolving uncertainty that could affect national energy security is that the quake rocked three nuclear power facilities, with TEPCO’s old Fukushima plant damaged badly enough to occasion a Stage 4 alert (Three Mile Island was a Stage 5 alert). It is sometimes stated, without proper argumentation, that such indirect losses can be roughly the same size as the direct losses. S. E., and S. B. The implications will be related, ‘hazard’ but only of ‘disaster’. It utilizes the Critical Path Method for repair scheduling and realistic labor allocations that are based on the amount and severity of building damage. This review article examines these differences, for instance those related to the methodology, use of assessments and uncertainties. They together destroyed over 150,000 buildings and left about 300,000 people homeless. Hopefully economists can have more in-depth analyses of the interaction between market rationality and so-called political “rationality”. They account for about 7.8% of GDP. The result is shown by equation (2), estimated indirect losses, which can be ob, when the most active reconstruction activ, although it is a small amount. The, e Ministry of Land and Transportation, the one of. The shambles of Australia’s energy transition, Central Institute for Economic Management, Centre for Strategic and International Studies, Fiscal Plicy Research Institute Foundation, Institute of World Economics and Politics, Korea Institute for International Economic Policy, New Zealand Institute of Economic Research, Philippines Institute for Development Studies, Singapore Centre for Applied and Policy Economics, Bangladesh Institute of Development Studies, Indian Council for Research on International Economic Relations, Indira Gandhi Institute of Development Research, Institute for Integrated Development Studies, Marga Institute: Centre for Development Studies, National Centre of Applied Economic Research, National Institute of Public Finance and Policy, Pakistan Institute of Development Economics, Research and Information System for Developing Countries. It will be a miracle if the death toll is lower than Kobe’s. 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