Publication:
Modeling the Roles of Heterogeneity, Substitution, and Inventories in the Assessment of Natural Disaster Economic Costs

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dc.contributor.authorHallegatte, Stéphane
dc.date.accessioned2012-04-27T07:44:38Z
dc.date.available2012-04-27T07:44:38Z
dc.date.issued2012-04
dc.description.abstractBased on an IO structure, the ARIO-inventory model simulates the economic consequences and responses to a natural disaster. It represents explicitly production bottlenecks, models a flexibility in production capacity in case of scarcity, and introduces inventories as an additional flexibility in the production system. Moreover, it takes into account the heterogeneity in goods and services within sectors, and the consequences on production bottlenecks and substitution possibilities. The model is applied to the landfall of hurricane Katrina in Louisiana. Sensitivity analyses show that results are extremely sensitive to several uncertain model parameters. In particular, accounting for heterogeneity within sectors has a large negative influence on production bottlenecks, and thus increases total economic losses from natural disasters and other supply-side shocks. This paper shows that current models disregard important mechanisms and proposes an approach to take them into account.en
dc.identifierhttp://documents.worldbank.org/curated/en/2012/04/16237455/modeling-roles-heterogeneity-substitution-inventories-assessment-natural-disaster-economic-costs
dc.identifier.doi10.1596/1813-9450-6047
dc.identifier.urihttps://hdl.handle.net/10986/6050
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper ; No. 6047
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectACCOUNTING
dc.subjectAGRICULTURE
dc.subjectBANKRUPTCY
dc.subjectBUSINESS RELATIONSHIP
dc.subjectBUSINESS SERVICES
dc.subjectBUSINESSES
dc.subjectCHEMICALS
dc.subjectCOMMODITIES
dc.subjectCOMMODITY
dc.subjectCONSUMER MARKETS
dc.subjectCONSUMERS
dc.subjectDAMAGES
dc.subjectDEVELOPMENT ECONOMICS
dc.subjectDEVELOPMENT POLICY
dc.subjectDISASTER PREVENTION
dc.subjectDISASTER SITUATIONS
dc.subjectDRIVERS
dc.subjectDURABLE GOODS
dc.subjectEARTHQUAKE
dc.subjectEARTHQUAKES
dc.subjectECONOMETRIC ANALYSES
dc.subjectECONOMETRICS
dc.subjectECONOMIC ACTIVITY
dc.subjectECONOMIC ANALYSIS
dc.subjectECONOMIC COSTS
dc.subjectECONOMIC GROWTH
dc.subjectECONOMIC LOSS
dc.subjectECONOMIC MODELS
dc.subjectECONOMIC SECTORS
dc.subjectECONOMIC STRUCTURE
dc.subjectECONOMIC SYSTEMS
dc.subjectELASTICITY
dc.subjectELASTICITY OF SUBSTITUTION
dc.subjectELECTRICITY
dc.subjectEMAIL ADDRESS
dc.subjectEQUILIBRIUM
dc.subjectEQUIPMENT
dc.subjectEQUIPMENTS
dc.subjectEXPORTS
dc.subjectFAIR
dc.subjectFINANCIAL SERVICES
dc.subjectFLOOD
dc.subjectFLOODS
dc.subjectFUTURE RESEARCH
dc.subjectGDP
dc.subjectGENERAL EQUILIBRIUM
dc.subjectGENERAL EQUILIBRIUM ANALYSIS
dc.subjectGLOBAL SUPPLY CHAINS
dc.subjectGROWTH RATE
dc.subjectGROWTH THEORIES
dc.subjectHURRICANE
dc.subjectHURRICANES
dc.subjectICAP
dc.subjectINDUSTRIAL PRODUCTION
dc.subjectINSURANCE
dc.subjectINTERMEDIATE GOODS
dc.subjectINVENTORIES
dc.subjectINVENTORY
dc.subjectINVENTORY LEVEL
dc.subjectINVENTORY LEVELS
dc.subjectMANUFACTURING
dc.subjectMARKET EQUILIBRIUM
dc.subjectNATURAL DISASTER
dc.subjectNATURAL DISASTERS
dc.subjectNATURAL HAZARDS
dc.subjectNETWORKS
dc.subjectOPEN ACCESS
dc.subjectOUTPUTS
dc.subjectOUTSOURCING
dc.subjectPAYMENT SYSTEM
dc.subjectPOLITICAL ECONOMY
dc.subjectPRICE INCREASES
dc.subjectPRICE LEVELS
dc.subjectPRICE REGULATION
dc.subjectPRIVATE SECTOR
dc.subjectPRODUCTION FUNCTION
dc.subjectPRODUCTION FUNCTIONS
dc.subjectPRODUCTION PROCESS
dc.subjectPRODUCTION PROCESSES
dc.subjectPRODUCTIVITY
dc.subjectPURCHASING
dc.subjectRECONSTRUCTION
dc.subjectRESULT
dc.subjectRESULTS
dc.subjectRETAIL
dc.subjectRETAIL TRADE
dc.subjectSALES
dc.subjectSENSITIVITY ANALYSES
dc.subjectSENSITIVITY ANALYSIS
dc.subjectSIGNALING EFFECT
dc.subjectSITES
dc.subjectSKILLED WORKERS
dc.subjectSMALL BUSINESS
dc.subjectSOCIOECONOMIC IMPACTS
dc.subjectSTICKY PRICES
dc.subjectSTORM
dc.subjectSUBSTITUTE
dc.subjectSUBSTITUTES
dc.subjectSUPPLIER
dc.subjectSUPPLIERS
dc.subjectTERRORISM
dc.subjectTIME PERIOD
dc.subjectTOTAL OUTPUT
dc.subjectTRANSACTION
dc.subjectTRANSPORT SYSTEM
dc.subjectTRANSPORTATION NETWORK
dc.subjectUSES
dc.subjectVALUE ADDED
dc.subjectVOLCANO
dc.subjectWAGES
dc.subjectWEB
dc.subjectWHOLESALE TRADE
dc.titleModeling the Roles of Heterogeneity, Substitution, and Inventories in the Assessment of Natural Disaster Economic Costsen
dspace.entity.typePublication
okr.crosscuttingsolutionareaJobs
okr.crossref.titleModeling the Roles of Heterogeneity, Substitution, and Inventories in the Assessment of Natural Disaster Economic Costs
okr.date.disclosure2012-04-01
okr.date.doiregistration2025-04-10T11:00:47.216780Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2012/04/16237455/modeling-roles-heterogeneity-substitution-inventories-assessment-natural-disaster-economic-costs
okr.globalpracticeMacroeconomics and Fiscal Management
okr.globalpracticeSocial Protection and Labor
okr.globalpracticeEnvironment and Natural Resources
okr.globalpracticeTransport and ICT
okr.globalpracticeFinance and Markets
okr.globalpracticeTrade and Competitiveness
okr.guid410441468142479058
okr.identifier.doi10.1596/1813-9450-6047
okr.identifier.externaldocumentum000158349_20120423093641
okr.identifier.internaldocumentum16237455
okr.identifier.reportWPS6047
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2012/04/23/000158349_20120423093641/Rendered/PDF/WPS6047.pdfen
okr.region.countryUnited States
okr.region.geographicalNorth America
okr.topicEnvironment::Natural Disasters
okr.topicPrivate Sector Development::E-Business
okr.topicSocial Protections and Labor::Labor Policies
okr.topicEconomic Theory and Research
okr.topicMacroeconomics and Economic Growth::Markets and Market Access
okr.unitDevelopment Research Group (DECRG)
okr.volume1 of 1
relation.isAuthorOfPublication2fea2b63-4a74-5fbd-b964-71ef895df009
relation.isAuthorOfPublication.latestForDiscovery2fea2b63-4a74-5fbd-b964-71ef895df009
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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