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- W4313253235 endingPage "103037" @default.
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- W4313253235 abstract "Using a dynamic stochastic general equilibrium model, we study the channels through which natural disaster shocks affect macroeconomic outcomes and welfare in disaster-prone countries. We solve the model using Taylor projection, a solution method that is shown to deal effectively with high-impact weather shocks calibrated in accordance to empirical evidence. We find large and persistent effects of weather shocks that significantly impact the income convergence path of disaster-prone countries. Relative to non-disaster-prone countries, on average, these shocks cause a welfare loss equivalent to a permanent fall in consumption of 5.3 percent. Welfare gains to countries that self-finance investments in resilient public infrastructure are found to be small, and international aid has to be sizable to achieve significant welfare gains. In addition, it is more cost-effective for donors to contribute to the financing of resilience before the realization of disasters, rather than disbursing aid after their realization." @default.
- W4313253235 created "2023-01-06" @default.
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- W4313253235 date "2023-03-01" @default.
- W4313253235 modified "2023-09-27" @default.
- W4313253235 title "Macroeconomic outcomes in disaster-prone countries" @default.
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- W4313253235 doi "https://doi.org/10.1016/j.jdeveco.2022.103037" @default.
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