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This paper surveys the state of the economic literature examining the aggregate impacts of natural disasters. The paper reviews the main disaster data sources available, discusses the determinants of the direct effects of disasters, and distinguishes between short- and long-run indirect effects. The paper then examines some of the relevant policy questions and follows up with a survey of current projections about the likelihood of future disasters. The paper ends by identifying several significant gaps in the literature.
Eduardo A. Cavallo (Tue,) studied this question.