Publication:
Natural Disasters and the Dynamics of Intangible Assets

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dc.contributor.authorLópez, Ramón
dc.date.accessioned2012-03-19T19:09:27Z
dc.date.available2012-03-19T19:09:27Z
dc.date.issued2009-03-01
dc.description.abstractEmpirical evidence suggests that the higher-order effects of natural disasters, which affect intangible assets, may be even more important than the material inter-industry effects. However, most existing general equilibrium models ignore higher order effects concerning human capital. Moreover, it is recognized that natural resource dependence increases vulnerability to natural disasters. Recent studies have indeed shown the potential importance of subsistence traps caused by asset losses in low-income economies from a partial equilibrium perspective. This paper presents an analysis that allows for endogenous investments in real assets (physical capital) as well as in human capital, explicitly considering the potential for subsistence traps arising from minimum consumption and minimum natural resource irreversibility thresholds. The general equilibrium ramifications of subsistence traps are developed. The main issue is that the economy may be subject to hysteresis: A temporary shock such as a natural disaster may leave permanent consequences for the economy. An obvious permanent effect of a one-time disaster shock is that physical man-made and natural assets owned especially by poor households may end up completely wiped out. The disaster may not be the direct cause; it may be that poor households would have to obtain minimum subsistence consumption out of depleted assets. However, not all permanent effects of a one-time shock are negative. Under certain conditions, the destruction of man-made physical and natural capital may have general equilibrium effects that increase the incentives to invest in human capital and may even propel a formerly stagnating economy into a virtuous path of continuing growth.en
dc.identifierhttp://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090324133542
dc.identifier.doi10.1596/1813-9450-4874
dc.identifier.urihttps://hdl.handle.net/10986/4069
dc.languageEnglish
dc.relation.ispartofseriesPolicy Research working paper ; no. WPS 4874
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectACCESS TO MARKETS
dc.subjectACCOUNTING
dc.subjectAGRICULTURE
dc.subjectASSET RATIO
dc.subjectASSET RECONSTRUCTION
dc.subjectASSETS
dc.subjectBIASES
dc.subjectBONDS
dc.subjectBORROWING
dc.subjectBUDGET CONSTRAINT
dc.subjectBUDGET CONSTRAINTS
dc.subjectCAPITA INCOME GROWTH
dc.subjectCAPITAL ACCUMULATION
dc.subjectCAPITAL ASSETS
dc.subjectCAPITAL FLOWS
dc.subjectCAPITAL GROWTH
dc.subjectCAPITAL GROWTH RATE
dc.subjectCAPITAL INVESTMENT
dc.subjectCAPITAL INVESTMENTS
dc.subjectCAPITAL LOSSES
dc.subjectCAPITAL MARKET
dc.subjectCAPITAL MARKET LIBERALIZATION
dc.subjectCAPITAL MARKETS
dc.subjectCAPITAL STOCK
dc.subjectCAPITAL STOCKS
dc.subjectCOMMODITY PRICES
dc.subjectCONSTANT RATE
dc.subjectCONSTANT RETURNS
dc.subjectCONSTANT RETURNS TO SCALE
dc.subjectCONSUMPTION EXPENDITURE
dc.subjectCONSUMPTION EXPENDITURES
dc.subjectCONSUMPTION LEVELS
dc.subjectCREDIT RATIONING
dc.subjectDAMAGES
dc.subjectDERIVATIVES
dc.subjectDEVELOPING COUNTRIES
dc.subjectDISCOUNT RATE
dc.subjectECONOMIC GROWTH
dc.subjectECONOMIC INEFFICIENCY
dc.subjectECONOMICS
dc.subjectELASTICITY
dc.subjectELASTICITY OF SUBSTITUTION
dc.subjectEMPLOYMENT
dc.subjectENDOGENOUS VARIABLE
dc.subjectENDOWMENTS
dc.subjectENROLLMENT
dc.subjectENVIRONMENTAL PROTECTION
dc.subjectEQUALITY
dc.subjectEQUILIBRIUM
dc.subjectEQUILIBRIUM LEVEL
dc.subjectEQUIPMENT
dc.subjectEQUIPMENTS
dc.subjectEXCESS DEMAND
dc.subjectEXPECTED PRESENT VALUE
dc.subjectEXPENDITURE
dc.subjectFACTORS OF PRODUCTION
dc.subjectFINANCIAL ASSETS
dc.subjectFINANCIAL INSTRUMENTS
dc.subjectFINANCIAL INTERMEDIARIES
dc.subjectFINANCIAL RESOURCES
dc.subjectFINANCIAL SERVICES
dc.subjectGDP
dc.subjectGENERAL EQUILIBRIUM
dc.subjectGENERAL EQUILIBRIUM MODELS
dc.subjectGOVERNMENT BUDGETS
dc.subjectGOVERNMENT EXPENDITURE
dc.subjectGOVERNMENT EXPENDITURES
dc.subjectGOVERNMENT REVENUES
dc.subjectGOVERNMENT SPENDING
dc.subjectGOVERNMENT SUBSIDIES
dc.subjectGROWTH ACCOUNTING
dc.subjectGROWTH MODELS
dc.subjectGROWTH PROCESS
dc.subjectGROWTH RATE
dc.subjectGROWTH RATES
dc.subjectGROWTH THEORY
dc.subjectHIGH WAGES
dc.subjectHOUSEHOLD INCOME
dc.subjectHOUSEHOLD INCOMES
dc.subjectHOUSEHOLD INVESTMENT
dc.subjectHOUSEHOLD SAVINGS
dc.subjectHOUSEHOLDS
dc.subjectHUMAN CAPITAL
dc.subjectHUMAN CAPITALS
dc.subjectINCOME
dc.subjectINCOME GROWTH
dc.subjectINEQUALITY
dc.subjectINPUT PRICES
dc.subjectINTANGIBLE
dc.subjectINTANGIBLE ASSET
dc.subjectINTANGIBLE ASSETS
dc.subjectINTERMEDIATE GOODS
dc.subjectINTERMEDIATE INPUT
dc.subjectINTERNATIONAL BANK
dc.subjectINTERNATIONAL TRADE
dc.subjectINVESTING
dc.subjectINVESTMENT DECISIONS
dc.subjectINVESTMENT RATE
dc.subjectLABOR DEMAND
dc.subjectLABOR EFFICIENCY
dc.subjectLABOR FORCE
dc.subjectLABOR MARKET
dc.subjectLABOR MARKETS
dc.subjectLABOR MIGRATION
dc.subjectLABOR SUPPLY
dc.subjectLEVEL OF CAPITAL
dc.subjectLEVEL OF OUTPUT
dc.subjectLOCAL INFRASTRUCTURE
dc.subjectLOW ELASTICITY OF SUBSTITUTION
dc.subjectMANPOWER
dc.subjectMARGINAL COST
dc.subjectMARGINAL RATE OF RETURN
dc.subjectMARGINAL UTILITY
dc.subjectMARGINAL VALUE
dc.subjectMARKET CONDITION
dc.subjectMARKET EQUILIBRIUM
dc.subjectMARKET FAILURE
dc.subjectMARKET FAILURES
dc.subjectMARKET IMPERFECTIONS
dc.subjectMARKET WAGE
dc.subjectMIDDLE INCOME COUNTRIES
dc.subjectNATURAL CAPITAL
dc.subjectNATURAL CAPITALS
dc.subjectNATURAL DISASTER
dc.subjectNATURAL DISASTERS
dc.subjectNATURAL RESOURCES
dc.subjectNEGATIVITY CONSTRAINT
dc.subjectNET INVESTMENT
dc.subjectOPEN ECONOMIES
dc.subjectOPEN ECONOMY
dc.subjectOPPORTUNITY COST
dc.subjectOPTIMAL INVESTMENT
dc.subjectOPTIMIZATION
dc.subjectOUTPUTS
dc.subjectPER CAPITA INCOME
dc.subjectPHYSICAL ASSETS
dc.subjectPHYSICAL CAPITAL
dc.subjectPOTENTIAL INVESTORS
dc.subjectPRIVATE ENTERPRISES
dc.subjectPRODUCTION FUNCTION
dc.subjectPRODUCTION FUNCTIONS
dc.subjectPRODUCTIVE ASSETS
dc.subjectPRODUCTIVE CAPITAL
dc.subjectPROFITABILITY
dc.subjectPROPERTY RIGHTS
dc.subjectPUBLIC POLICY
dc.subjectPUBLIC SPENDING
dc.subjectRATE OF RETURN TO CAPITAL
dc.subjectRATES OF RETURN
dc.subjectREAL WAGES
dc.subjectRESOURCE ALLOCATION
dc.subjectRETURNS
dc.subjectSAVINGS
dc.subjectSTATE EQUILIBRIUM
dc.subjectSUBSISTENCE HOUSEHOLD
dc.subjectSUBSISTENCE HOUSEHOLDS
dc.subjectTANGIBLE ASSET
dc.subjectTAX
dc.subjectTAX RATE
dc.subjectTAX REVENUES
dc.subjectTOTAL CAPITAL STOCK
dc.subjectTOTAL FACTOR PRODUCTIVITY
dc.subjectTOTAL LABOR FORCE
dc.subjectTOTAL REVENUE
dc.subjectUNIT OF CAPITAL
dc.subjectUPWARD SHIFT
dc.subjectUTILITY FUNCTION
dc.subjectWAGE INCREASES
dc.subjectWAGE RATES
dc.subjectWAGES
dc.subjectWEALTH
dc.titleNatural Disasters and the Dynamics of Intangible Assetsen
dspace.entity.typePublication
okr.crosscuttingsolutionareaJobs
okr.crossref.titleNatural Disasters And The Dynamics Of Intangible Assets
okr.date.doiregistration2025-04-10T12:19:55.702864Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090324133542
okr.globalpracticeSocial Protection and Labor
okr.guid759361468325188232
okr.identifier.doi10.1596/1813-9450-4874
okr.identifier.externaldocumentum000158349_20090324133542
okr.identifier.internaldocumentum10376510
okr.identifier.reportWPS4874
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2009/03/24/000158349_20090324133542/Rendered/PDF/WPS4874.pdfen
okr.region.administrativeWorld
okr.region.administrativeWorld
okr.topicSocial Protections and Labor::Labor Policies
okr.unitDevelopment Research Group (DECRG)
okr.volume1 of 1
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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