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Journal Articles Journal of Economic Dynamics and Control Year : 2012

Firm-network characteristics and economic robustness to natural disasters

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. (C) 2011 Published by Elsevier B.V.

Dates and versions

hal-00716554 , version 1 (10-07-2012)

Identifiers

Cite

Fanny Henriet, Stéphane Hallegatte, Lionel Tabourier. Firm-network characteristics and economic robustness to natural disasters. Journal of Economic Dynamics and Control, 2012, 36 (1), pp.150-167. ⟨10.1016/j.jedc.2011.10.001⟩. ⟨hal-00716554⟩
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