McDermott, Thomas K. J.; Barry, Frank; Tol, Richard S. J. - Economic and Social Research Institute (ESRI) - 2011
We demonstrate, using a simple two-period equilibrium model of the economy, the potential effects of extreme event occurrences - such as natural or humanitarian disasters - on economic growth over the medium- to long-term. In particular, we focus on the effect of such shocks on investment. We...