Natural Hazard-Induced Disasters and Production Efficiency: Moving Closer to or Further from the Frontier?

Abstract Production efficiency is a key determinant of economic growth and demonstrates how a country uses its resources by relating the quantity of its inputs to its outputs. When a natural hazard-induced disaster strikes, it has a devastating impact on capital and labor, but at the same time provides an opportunity to upgrade capital and increase labor demand and training opportunities, thereby potentially boosting production efficiency. We studied the impact of natural hazard-induced disasters on countries’ production efficiency, using the case study of hurricanes in the Caribbean. To this end we built a country-specific, time-varying data set of hurricane damage and national output and input indicators for 17 Caribbean countries for the period 1940–2014. Our results, using a stochastic frontier approach, show that there is a short-lived production efficiency boost, and that this can be large for very damaging storms.

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Main Authors: Mohan, Preeya S, Spencer, Nekeisha, Strobl, Eric
Format: Journal Article biblioteca
Language:English
Published: 2019-05-20
Online Access:https://doi.org/10.1007/s13753-019-0218-9
http://hdl.handle.net/2139/46864
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spelling oai:oai:uwispace.sta.uwi.edu:2139:2139-468642019-05-27T04:31:08Z Natural Hazard-Induced Disasters and Production Efficiency: Moving Closer to or Further from the Frontier? Mohan, Preeya S Spencer, Nekeisha Strobl, Eric Abstract Production efficiency is a key determinant of economic growth and demonstrates how a country uses its resources by relating the quantity of its inputs to its outputs. When a natural hazard-induced disaster strikes, it has a devastating impact on capital and labor, but at the same time provides an opportunity to upgrade capital and increase labor demand and training opportunities, thereby potentially boosting production efficiency. We studied the impact of natural hazard-induced disasters on countries’ production efficiency, using the case study of hurricanes in the Caribbean. To this end we built a country-specific, time-varying data set of hurricane damage and national output and input indicators for 17 Caribbean countries for the period 1940–2014. Our results, using a stochastic frontier approach, show that there is a short-lived production efficiency boost, and that this can be large for very damaging storms. 2019-05-26T05:05:27Z 2019-05-26T05:05:27Z 2019-05-20 2019-05-26T05:05:28Z Journal Article https://doi.org/10.1007/s13753-019-0218-9 http://hdl.handle.net/2139/46864 en The Author(s) application/pdf
institution UWI TT
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component Bibliográfico
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databasecode dig-uwi-tt
tag biblioteca
region Caribe
libraryname UWI library system TT
language English
description Abstract Production efficiency is a key determinant of economic growth and demonstrates how a country uses its resources by relating the quantity of its inputs to its outputs. When a natural hazard-induced disaster strikes, it has a devastating impact on capital and labor, but at the same time provides an opportunity to upgrade capital and increase labor demand and training opportunities, thereby potentially boosting production efficiency. We studied the impact of natural hazard-induced disasters on countries’ production efficiency, using the case study of hurricanes in the Caribbean. To this end we built a country-specific, time-varying data set of hurricane damage and national output and input indicators for 17 Caribbean countries for the period 1940–2014. Our results, using a stochastic frontier approach, show that there is a short-lived production efficiency boost, and that this can be large for very damaging storms.
format Journal Article
author Mohan, Preeya S
Spencer, Nekeisha
Strobl, Eric
spellingShingle Mohan, Preeya S
Spencer, Nekeisha
Strobl, Eric
Natural Hazard-Induced Disasters and Production Efficiency: Moving Closer to or Further from the Frontier?
author_facet Mohan, Preeya S
Spencer, Nekeisha
Strobl, Eric
author_sort Mohan, Preeya S
title Natural Hazard-Induced Disasters and Production Efficiency: Moving Closer to or Further from the Frontier?
title_short Natural Hazard-Induced Disasters and Production Efficiency: Moving Closer to or Further from the Frontier?
title_full Natural Hazard-Induced Disasters and Production Efficiency: Moving Closer to or Further from the Frontier?
title_fullStr Natural Hazard-Induced Disasters and Production Efficiency: Moving Closer to or Further from the Frontier?
title_full_unstemmed Natural Hazard-Induced Disasters and Production Efficiency: Moving Closer to or Further from the Frontier?
title_sort natural hazard-induced disasters and production efficiency: moving closer to or further from the frontier?
publishDate 2019-05-20
url https://doi.org/10.1007/s13753-019-0218-9
http://hdl.handle.net/2139/46864
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