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The economics of natural disasters

When a natural disaster strikes, we see the shocking images and relief efforts on the news, but as the news cycle moves on, we rarely witness the recovery process that follows. In this article Ilan Noy examines what economics can tell us about these disasters and the road to recovery

The aftermath of Japan’s 2011 tsunami

You can find answers to the questions in this article at www.hoddereducation.co.uk/economicreviewextras

Natural disasters that cause harm to people and/or damage buildings and infrastructure can come in many forms. They generally result from meteorological or geological phenomena, such as storms, floods, droughts, earthquakes, volcanic eruptions and tsunamis. These hazards can occur quickly, at times without warning, or they can build up slowly, over the span of days, weeks, months or even years. By themselves, natural hazards are not disasters. A hurricane that does not make landfall and an earthquake that occurs in the desert do not have a meaningful impact on society, and therefore should not be considered disasters.

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Measuring income inequality

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