Changes in Natural Disaster Risk: Macroeconomic Responses in Selected Latin American Countries
This paper studies the theoretical effects of changes in disaster risk on macroeconomic variables in five Latin American economies. It compares country-specific variants of the New Keynesian model with disaster risk developed by Isoré and Szczerbowicz (2017). Countries with higher price flexibility,...
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| Format: | Article |
| Language: | English |
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MDPI AG
2018-02-01
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| Series: | Economies |
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| Online Access: | http://www.mdpi.com/2227-7099/6/1/13 |
| _version_ | 1798040818779422720 |
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| author | Marlène Isoré |
| author_facet | Marlène Isoré |
| author_sort | Marlène Isoré |
| collection | DOAJ |
| description | This paper studies the theoretical effects of changes in disaster risk on macroeconomic variables in five Latin American economies. It compares country-specific variants of the New Keynesian model with disaster risk developed by Isoré and Szczerbowicz (2017). Countries with higher price flexibility, such as Argentina, Brazil, and Mexico, are found to be relatively less vulnerable to disaster risk shocks, as compared to Chile and Colombia in particular. Overall, the analysis suggests that increases in the probability of natural disasters over time may have significant macroeconomic effects, beyond the direct impact of actual disaster occurrences themselves. |
| first_indexed | 2024-04-11T22:12:54Z |
| format | Article |
| id | doaj.art-b2a5c74d9e63455aa7893568200c630a |
| institution | Directory Open Access Journal |
| issn | 2227-7099 |
| language | English |
| last_indexed | 2024-04-11T22:12:54Z |
| publishDate | 2018-02-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Economies |
| spelling | doaj.art-b2a5c74d9e63455aa7893568200c630a2022-12-22T04:00:31ZengMDPI AGEconomies2227-70992018-02-01611310.3390/economies6010013economies6010013Changes in Natural Disaster Risk: Macroeconomic Responses in Selected Latin American CountriesMarlène Isoré0HECER, University of Helsinki, FI-00014 Helsinki, FinlandThis paper studies the theoretical effects of changes in disaster risk on macroeconomic variables in five Latin American economies. It compares country-specific variants of the New Keynesian model with disaster risk developed by Isoré and Szczerbowicz (2017). Countries with higher price flexibility, such as Argentina, Brazil, and Mexico, are found to be relatively less vulnerable to disaster risk shocks, as compared to Chile and Colombia in particular. Overall, the analysis suggests that increases in the probability of natural disasters over time may have significant macroeconomic effects, beyond the direct impact of actual disaster occurrences themselves.http://www.mdpi.com/2227-7099/6/1/13natural disastersdisaster riskDSGE modelsbusiness cyclesLatin America |
| spellingShingle | Marlène Isoré Changes in Natural Disaster Risk: Macroeconomic Responses in Selected Latin American Countries Economies natural disasters disaster risk DSGE models business cycles Latin America |
| title | Changes in Natural Disaster Risk: Macroeconomic Responses in Selected Latin American Countries |
| title_full | Changes in Natural Disaster Risk: Macroeconomic Responses in Selected Latin American Countries |
| title_fullStr | Changes in Natural Disaster Risk: Macroeconomic Responses in Selected Latin American Countries |
| title_full_unstemmed | Changes in Natural Disaster Risk: Macroeconomic Responses in Selected Latin American Countries |
| title_short | Changes in Natural Disaster Risk: Macroeconomic Responses in Selected Latin American Countries |
| title_sort | changes in natural disaster risk macroeconomic responses in selected latin american countries |
| topic | natural disasters disaster risk DSGE models business cycles Latin America |
| url | http://www.mdpi.com/2227-7099/6/1/13 |
| work_keys_str_mv | AT marleneisore changesinnaturaldisasterriskmacroeconomicresponsesinselectedlatinamericancountries |