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Recovery from natural disaster: A numerical investigation based on the convergence approach

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  • Hosoya, Kei

Abstract

This article employs a simple growth model, using government-funded public infrastructure and external effects to examine how the 2011 Great East Japan Earthquake and Tsunami affected economic recovery in the post-disaster period. By examining the recovery period following the disaster, we concretely consider the recovery process from various angles. Our main finding is that the speed of convergence decreases slightly, from about 5.7% to about 5.4%, after the disaster. In the disaster area, many people have concerns about the length of the recovery period. In considering the recovery progress, we also examine several economic and social policies that might help to shorten the recovery period.

Suggested Citation

  • Hosoya, Kei, 2016. "Recovery from natural disaster: A numerical investigation based on the convergence approach," Economic Modelling, Elsevier, vol. 55(C), pages 410-420.
    • Handle: RePEc:eee:ecmode:v:55:y:2016:i:c:p:410-420
    DOI: 10.1016/j.econmod.2016.02.029
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    6. Kei Hosoya, 2024. "Endogenous time preference and infrastructure-led growth with an unexpected numerical example," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 23(1), pages 3-32, January.

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    More about this item

    Keywords

    2011 Great East Japan Earthquake and Tsunami; Natural disasters; Capital deepening externality; Public infrastructure; Speed of convergence;
    All these keywords.

    JEL classification:

    • E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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