Economic Resilience : Definition and Measurement
The welfare impact of a disaster does not only depend on the physical characteristics of the event or its direct impacts in terms of lost lives and assets. Welfare impacts also depend on the ability of the economy to cope, recover, and reconstruct...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2014/05/19456702/economic-resilience-definition-measurement-economic-resilience-definition-measurement http://hdl.handle.net/10986/18341 |
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okr-10986-18341 |
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oai_dc |
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Digital Repository |
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Foreign Institution |
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Digital Repositories |
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World Bank Open Knowledge Repository |
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World Bank |
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English en_US |
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ADVERSE CONSEQUENCES AIR POLLUTION ASSET VALUE ASSETS AVERAGE PRODUCTIVITY BENCHMARK BORROWING CAPITAL COST CAPITAL GAINS CAPITAL THEORY CATASTROPHES CLIMATE CLIMATE CHANGE CLIMATE CHANGE MITIGATION COAL CONSTRUCTION WORKERS CONSUMERS CONSUMPTION LOSS DAMAGES DEVELOPMENT POLICY DIRECT VALUE DISASTER DISASTER REDUCTION DISASTER RISK DISASTER RISK FINANCING DISASTER SITUATIONS DISCOUNTED VALUE DISTRIBUTION OF WEALTH DISTRIBUTIONAL EFFECTS DISTRIBUTIONAL IMPACTS DROUGHT DROUGHTS EARTHQUAKE EARTHQUAKES ECONOMIC ACTIVITY ECONOMIC EQUILIBRIUM ECONOMIC GROWTH ECONOMIC IMPACTS ECONOMIC INDICATORS ECONOMIC PERSPECTIVE ECONOMIC POLICIES ECONOMIC PROBLEM ECONOMIC RECOVERY ECONOMIC RESILIENCE ECONOMIC SECTORS ECONOMIC SITUATION ECONOMIC STATISTICS ECONOMIC STRUCTURE ECONOMIC SYSTEMS ECONOMIC THEORY ECONOMIC VALUE ELECTRICITY GENERATION ELECTRICITY GENERATION CAPACITY ENVIRONMENTAL PROTECTION EXPORTS EXTERNALITIES EXTREME EVENTS EXTREME POVERTY FINANCIAL INSTRUMENTS FINANCIAL PRODUCTS FINANCIAL RESOURCES FINANCIAL RETURNS FINANCIAL SERVICES FLOOD FLOODS FUTURE CONSUMPTION GDP GENERAL EQUILIBRIUM GENERAL EQUILIBRIUM MODELS GROSS DOMESTIC PRODUCT HEALTH CARE HURRICANE HURRICANE SEASON HURRICANES IMPORTS INCOME INCOME DISTRIBUTION INFLATION INSURANCE INSURANCE CLAIMS INSURANCE SCHEMES INSURANCE SYSTEMS INTEREST RATE INVENTORY JOBS LABOR PRODUCTIVITY LOSS IN CONSUMPTION MACROECONOMIC CONTEXT MACROECONOMIC EFFECTS MARGINAL PRODUCTIVITY MARGINAL UTILITY NATURAL DISASTER NATURAL DISASTERS NATURAL HAZARDS NEGATIVE EXTERNALITY OUTPUTS POLITICAL PROCESS POSITIVE EXTERNALITIES POSITIVE EXTERNALITY POWER GENERATION PRESENT VALUE PRICE INCREASE PROBABILITY OF OCCURRENCE PRODUCTION FUNCTION PRODUCTION FUNCTIONS PRODUCTION PROCESS PRODUCTIVE ASSETS PROGRAMS RECONSTRUCTION RELATIVE PRICE RELATIVE PRICES RISK MANAGEMENT RISK MANAGEMENT POLICIES RISK SHARING SAVINGS SCENARIOS SKILLED WORKERS SMALL BUSINESS STORM STORMS SUBSTITUTION SUPPLIERS TAX REVENUES THUNDERSTORMS TOTAL OUTPUT TRANSACTION COSTS TSUNAMI UNDERESTIMATES UNEMPLOYMENT UTILITY FUNCTION UTILITY FUNCTIONS UTILITY IMPACT VALUATION VALUE OF OUTPUT WEALTH |
| spellingShingle |
ADVERSE CONSEQUENCES AIR POLLUTION ASSET VALUE ASSETS AVERAGE PRODUCTIVITY BENCHMARK BORROWING CAPITAL COST CAPITAL GAINS CAPITAL THEORY CATASTROPHES CLIMATE CLIMATE CHANGE CLIMATE CHANGE MITIGATION COAL CONSTRUCTION WORKERS CONSUMERS CONSUMPTION LOSS DAMAGES DEVELOPMENT POLICY DIRECT VALUE DISASTER DISASTER REDUCTION DISASTER RISK DISASTER RISK FINANCING DISASTER SITUATIONS DISCOUNTED VALUE DISTRIBUTION OF WEALTH DISTRIBUTIONAL EFFECTS DISTRIBUTIONAL IMPACTS DROUGHT DROUGHTS EARTHQUAKE EARTHQUAKES ECONOMIC ACTIVITY ECONOMIC EQUILIBRIUM ECONOMIC GROWTH ECONOMIC IMPACTS ECONOMIC INDICATORS ECONOMIC PERSPECTIVE ECONOMIC POLICIES ECONOMIC PROBLEM ECONOMIC RECOVERY ECONOMIC RESILIENCE ECONOMIC SECTORS ECONOMIC SITUATION ECONOMIC STATISTICS ECONOMIC STRUCTURE ECONOMIC SYSTEMS ECONOMIC THEORY ECONOMIC VALUE ELECTRICITY GENERATION ELECTRICITY GENERATION CAPACITY ENVIRONMENTAL PROTECTION EXPORTS EXTERNALITIES EXTREME EVENTS EXTREME POVERTY FINANCIAL INSTRUMENTS FINANCIAL PRODUCTS FINANCIAL RESOURCES FINANCIAL RETURNS FINANCIAL SERVICES FLOOD FLOODS FUTURE CONSUMPTION GDP GENERAL EQUILIBRIUM GENERAL EQUILIBRIUM MODELS GROSS DOMESTIC PRODUCT HEALTH CARE HURRICANE HURRICANE SEASON HURRICANES IMPORTS INCOME INCOME DISTRIBUTION INFLATION INSURANCE INSURANCE CLAIMS INSURANCE SCHEMES INSURANCE SYSTEMS INTEREST RATE INVENTORY JOBS LABOR PRODUCTIVITY LOSS IN CONSUMPTION MACROECONOMIC CONTEXT MACROECONOMIC EFFECTS MARGINAL PRODUCTIVITY MARGINAL UTILITY NATURAL DISASTER NATURAL DISASTERS NATURAL HAZARDS NEGATIVE EXTERNALITY OUTPUTS POLITICAL PROCESS POSITIVE EXTERNALITIES POSITIVE EXTERNALITY POWER GENERATION PRESENT VALUE PRICE INCREASE PROBABILITY OF OCCURRENCE PRODUCTION FUNCTION PRODUCTION FUNCTIONS PRODUCTION PROCESS PRODUCTIVE ASSETS PROGRAMS RECONSTRUCTION RELATIVE PRICE RELATIVE PRICES RISK MANAGEMENT RISK MANAGEMENT POLICIES RISK SHARING SAVINGS SCENARIOS SKILLED WORKERS SMALL BUSINESS STORM STORMS SUBSTITUTION SUPPLIERS TAX REVENUES THUNDERSTORMS TOTAL OUTPUT TRANSACTION COSTS TSUNAMI UNDERESTIMATES UNEMPLOYMENT UTILITY FUNCTION UTILITY FUNCTIONS UTILITY IMPACT VALUATION VALUE OF OUTPUT WEALTH Hallegatte, Stephane Economic Resilience : Definition and Measurement |
| relation |
Policy Research Working Paper;No. 6852 |
| description |
The welfare impact of a disaster does
not only depend on the physical characteristics of the event
or its direct impacts in terms of lost lives and assets.
Welfare impacts also depend on the ability of the economy to
cope, recover, and reconstruct and therefore to minimize
aggregate consumption losses. This ability can be referred
to as the macroeconomic resilience to natural disasters.
Macroeconomic resilience has two components: instantaneous
resilience, which is the ability to limit the magnitude of
immediate production losses for a given amount of asset
losses, and dynamic resilience, which is the ability to
reconstruct and recover. Welfare impacts also depend on
micro-economic resilience, which depends on the distribution
of losses; on households' vulnerability, such as their
pre-disaster income and ability to smooth shocks over time
with savings, borrowing, and insurance, and on the social
protection system, or the mechanisms for sharing risks
across the population. The (economic) welfare disaster risk
in a country can be reduced by reducing the exposure or
vulnerability of people and assets (reducing asset losses),
increasing macroeconomic resilience (reducing aggregate
consumption losses for a given level of asset losses), or
increasing microeconomic resilience (reducing welfare losses
for a given level of aggregate consumption losses). The
paper proposes rules of thumb to estimate macroeconomic and
microeconomic resilience based on the relevant parameters in
the economy. It also provides a toolbox of policies to
increase macro- or micro-economic resilience and a list of
indicators that can be used to build a resilience indicator. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Hallegatte, Stephane |
| author_facet |
Hallegatte, Stephane |
| author_sort |
Hallegatte, Stephane |
| title |
Economic Resilience : Definition and Measurement |
| title_short |
Economic Resilience : Definition and Measurement |
| title_full |
Economic Resilience : Definition and Measurement |
| title_fullStr |
Economic Resilience : Definition and Measurement |
| title_full_unstemmed |
Economic Resilience : Definition and Measurement |
| title_sort |
economic resilience : definition and measurement |
| publisher |
World Bank, Washington, DC |
| publishDate |
2014 |
| url |
http://documents.worldbank.org/curated/en/2014/05/19456702/economic-resilience-definition-measurement-economic-resilience-definition-measurement http://hdl.handle.net/10986/18341 |
| _version_ |
1764440664892768256 |
| spelling |
okr-10986-183412021-04-23T14:03:44Z Economic Resilience : Definition and Measurement Hallegatte, Stephane ADVERSE CONSEQUENCES AIR POLLUTION ASSET VALUE ASSETS AVERAGE PRODUCTIVITY BENCHMARK BORROWING CAPITAL COST CAPITAL GAINS CAPITAL THEORY CATASTROPHES CLIMATE CLIMATE CHANGE CLIMATE CHANGE MITIGATION COAL CONSTRUCTION WORKERS CONSUMERS CONSUMPTION LOSS DAMAGES DEVELOPMENT POLICY DIRECT VALUE DISASTER DISASTER REDUCTION DISASTER RISK DISASTER RISK FINANCING DISASTER SITUATIONS DISCOUNTED VALUE DISTRIBUTION OF WEALTH DISTRIBUTIONAL EFFECTS DISTRIBUTIONAL IMPACTS DROUGHT DROUGHTS EARTHQUAKE EARTHQUAKES ECONOMIC ACTIVITY ECONOMIC EQUILIBRIUM ECONOMIC GROWTH ECONOMIC IMPACTS ECONOMIC INDICATORS ECONOMIC PERSPECTIVE ECONOMIC POLICIES ECONOMIC PROBLEM ECONOMIC RECOVERY ECONOMIC RESILIENCE ECONOMIC SECTORS ECONOMIC SITUATION ECONOMIC STATISTICS ECONOMIC STRUCTURE ECONOMIC SYSTEMS ECONOMIC THEORY ECONOMIC VALUE ELECTRICITY GENERATION ELECTRICITY GENERATION CAPACITY ENVIRONMENTAL PROTECTION EXPORTS EXTERNALITIES EXTREME EVENTS EXTREME POVERTY FINANCIAL INSTRUMENTS FINANCIAL PRODUCTS FINANCIAL RESOURCES FINANCIAL RETURNS FINANCIAL SERVICES FLOOD FLOODS FUTURE CONSUMPTION GDP GENERAL EQUILIBRIUM GENERAL EQUILIBRIUM MODELS GROSS DOMESTIC PRODUCT HEALTH CARE HURRICANE HURRICANE SEASON HURRICANES IMPORTS INCOME INCOME DISTRIBUTION INFLATION INSURANCE INSURANCE CLAIMS INSURANCE SCHEMES INSURANCE SYSTEMS INTEREST RATE INVENTORY JOBS LABOR PRODUCTIVITY LOSS IN CONSUMPTION MACROECONOMIC CONTEXT MACROECONOMIC EFFECTS MARGINAL PRODUCTIVITY MARGINAL UTILITY NATURAL DISASTER NATURAL DISASTERS NATURAL HAZARDS NEGATIVE EXTERNALITY OUTPUTS POLITICAL PROCESS POSITIVE EXTERNALITIES POSITIVE EXTERNALITY POWER GENERATION PRESENT VALUE PRICE INCREASE PROBABILITY OF OCCURRENCE PRODUCTION FUNCTION PRODUCTION FUNCTIONS PRODUCTION PROCESS PRODUCTIVE ASSETS PROGRAMS RECONSTRUCTION RELATIVE PRICE RELATIVE PRICES RISK MANAGEMENT RISK MANAGEMENT POLICIES RISK SHARING SAVINGS SCENARIOS SKILLED WORKERS SMALL BUSINESS STORM STORMS SUBSTITUTION SUPPLIERS TAX REVENUES THUNDERSTORMS TOTAL OUTPUT TRANSACTION COSTS TSUNAMI UNDERESTIMATES UNEMPLOYMENT UTILITY FUNCTION UTILITY FUNCTIONS UTILITY IMPACT VALUATION VALUE OF OUTPUT WEALTH The welfare impact of a disaster does not only depend on the physical characteristics of the event or its direct impacts in terms of lost lives and assets. Welfare impacts also depend on the ability of the economy to cope, recover, and reconstruct and therefore to minimize aggregate consumption losses. This ability can be referred to as the macroeconomic resilience to natural disasters. Macroeconomic resilience has two components: instantaneous resilience, which is the ability to limit the magnitude of immediate production losses for a given amount of asset losses, and dynamic resilience, which is the ability to reconstruct and recover. Welfare impacts also depend on micro-economic resilience, which depends on the distribution of losses; on households' vulnerability, such as their pre-disaster income and ability to smooth shocks over time with savings, borrowing, and insurance, and on the social protection system, or the mechanisms for sharing risks across the population. The (economic) welfare disaster risk in a country can be reduced by reducing the exposure or vulnerability of people and assets (reducing asset losses), increasing macroeconomic resilience (reducing aggregate consumption losses for a given level of asset losses), or increasing microeconomic resilience (reducing welfare losses for a given level of aggregate consumption losses). The paper proposes rules of thumb to estimate macroeconomic and microeconomic resilience based on the relevant parameters in the economy. It also provides a toolbox of policies to increase macro- or micro-economic resilience and a list of indicators that can be used to build a resilience indicator. 2014-05-15T15:53:03Z 2014-05-15T15:53:03Z 2014-05 http://documents.worldbank.org/curated/en/2014/05/19456702/economic-resilience-definition-measurement-economic-resilience-definition-measurement http://hdl.handle.net/10986/18341 English en_US Policy Research Working Paper;No. 6852 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research |