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Behavioral economic consequences of disasters

In: Handbook on the Economics of Disasters

Author

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  • Adam Rose

Abstract

The purpose of this chapter is to develop an economic analytical framework for estimating the behavioral effects of, and their consequences for disaster losses. The reduction of these losses represents the benefits of pre-disaster mitigation and post-disaster recovery. We provide conceptualizations, definitions, classifications, examples, and empirical results of this category of economic consequences. We also examine methods used to measure behavioral reactions to fear for insight into improving their delineation. The analysis is intended to serve as the basis for the legitimate inclusion of behavioral consequences in benefit-cost analysis. Because we are interested in a comprehensive assessment of behavioral effects, we also cover resilience adjustments and extend our initial partial equilibrium analysis to the general equilibrium level.

Suggested Citation

  • Adam Rose, 2022. "Behavioral economic consequences of disasters," Chapters, in: Mark Skidmore (ed.), Handbook on the Economics of Disasters, chapter 4, pages 50-71, Edward Elgar Publishing.
    • Handle: RePEc:elg:eechap:19599_4
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