IFDP Paper: On the GDP Effects of Severe Physical Hazards
Martin Bodenstein and Mikaël ScaramucciWe assess the impacts from physical hazards (or severe weather events) on economic activity in a panel of 98 countries using local projection methods. Proxying the strength of an event by the monetary damages it caused, we find severe weather events to reduce the level of GDP. For most events in the EM-DAT data set the effects are small.