This paper investigates the link between development, economic growth, and the economic losses from natural disasters in a normative analytical framework with an illustration on hurricane flood risks in New Orleans. It concludes that under broad conditions it is optimal for (1) the probability...

Based 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...