Local Economic Effects of Natural Disasters

摘要

A theoretical economic model, capable of considering both inter- and intra-city elements, was constructed in order to test the local economic effects of natural disasters. From the analyses performed, it was concluded that in the context of economic models, the test for local economic effects should be based on deviations of the actual rate of disaster activity from the expected rate of activity. Changes in the expected frequency of natural disaster are shown to affect local economic activity in ways that are reflected in the land market. The local economic effects of natural disasters were tested using a model suggested by theory in which housing markets react to the perceptions of the likelihood of natural disaster.