Firm-Network Characteristics and Economic Robustness to Natural Disasters

49 Pages Posted: 14 Dec 2011

See all articles by Fanny Henriet

Fanny Henriet

Paris School of Economics (PSE); CNRS

S. Hallegatte

World Bank

Lionel Tabourier

affiliation not provided to SSRN

Date Written: December 1, 2011

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

JEL Classification: C63, D85, L14, Q54

Suggested Citation

Henriet, Fanny and Hallegatte, Stephane and Tabourier, Lionel, Firm-Network Characteristics and Economic Robustness to Natural Disasters (December 1, 2011). Banque de France Working Paper No. 355, Available at SSRN: https://ssrn.com/abstract=1971703

Fanny Henriet (Contact Author)

Paris School of Economics (PSE) ( email )

48 Boulevard Jourdan
Paris, 75014 75014
France

CNRS ( email )

3, rue Michel-Ange
Paris, 75794
France

Stephane Hallegatte

World Bank ( email )

1818 H Street NW
Washington, DC 20433
United States

Lionel Tabourier

affiliation not provided to SSRN ( email )

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
83
Abstract Views
612
Rank
539,187
PlumX Metrics