The Indirect Cost of Natural Disasters and an Economic Definition of Macroeconomic Resilience
The welfare impact of a disaster does
not depend only on the physical characteristics of the event
or its direct impacts in terms of lost lives and assets.
Depending on the ability of the economy to cope, recover,
and reconstruct, the reconstruction will be more or less
difficult, and the welfare effects smaller or larger. This
ability, which can be referred to as the macroeconomic
resilience of the economy to natural disasters, is an