Behavioral economics earthquake

  • How do earthquakes affect the economics?

    Alongside devastating loss of live, natural disasters, such as this, can inflict serious damage on economies.
    They destroy equipment, buildings and infrastructure, and disrupt production.
    But the precise extent to which these events affect economic output is widely debated..

  • Is an earthquake economic?

    The economic impact of natural disasters, including these recent earthquakes, depends on the destruction they cause, pre-existing economic conditions and the ability of a country to reallocate its resources towards reconstruction (Hallegatte et al, 2022)..

  • What are 3 economic impacts of an earthquake?

    Long-term economic impact usually comprises the necessity to rebuild, may it be infrastructure, transportation networks, or peoples' homes.
    This is both time- and cost-consuming as reconstruction usually demands huge investment in the damaged area..

  • What are the economic and social effects of earthquakes on people?

    If there is a lack of money in the community meaning that people would not be able to build houses for themselves, get food or clothes so this would be difficult to live in when you have no houses, no food, clothes and a lack of resources, this could have terrible effects on the citizens mental health it could cause .

  • What is meant by Behavioural economics?

    Behavioral economics is the field of understanding why people do things financially that may be irrational.
    Blended between cognitive bias, heuristics, bounded rationalities and herd mentality, people tend to do things that may not always be in their best interest..

  • What is the economic impact of an earthquake?

    Those costs can be large.
    Current estimates of the total cost of rebuilding housing, productive capacity and infrastructure after the earthquake range between $25 billion and $50 billion, or up to 5% of GDP (e.g.
    JP Morgan, 2023)..

  • What is the economic impact of earthquake?

    A catastrophic earthquake could affect government at all levels, but especially at the local and state levels, by reducing future revenues, increasing current costs resulting from response activities, and increasing future costs resulting from recovery and reconstruction activities..

  • Economic impact
    The affected areas are home to 15 per cent of the country's population and contribute approximately 9 per cent of its GDP.
    Estimates of the economic cost range between US$20 billion and more than US$100 billion.
  • If there is a lack of money in the community meaning that people would not be able to build houses for themselves, get food or clothes so this would be difficult to live in when you have no houses, no food, clothes and a lack of resources, this could have terrible effects on the citizens mental health it could cause
  • In the year after an earthquake, GDP is, on average, around 1 percentage point lower in economies affected by earthquakes than in otherwise similar economies, though the difference is not statistically significant, reflecting the large variation in growth outcomes in the sample (Figure 1, left panels).
  • The economic impact of natural disasters, including these recent earthquakes, depends on the destruction they cause, pre-existing economic conditions and the ability of a country to reallocate its resources towards reconstruction (Hallegatte et al, 2022).
  • Those costs can be large.
    Current estimates of the total cost of rebuilding housing, productive capacity and infrastructure after the earthquake range between $25 billion and $50 billion, or up to 5% of GDP (e.g.
    JP Morgan, 2023).
Beine et al. (2020) found increased risk aversion and impatience following an earthquake, which influenced migration decisions. They noted that 
Fear of returning to earthquake-stricken buildings over concerns for aftershocks. Fear of impending hurricanes or floods causing government to 
Nov 14, 2019The researchers looked at three behaviors: Saving, drinking, and playing mahjong. They found that, on average, people who were spared by the 
The researchers looked at three behaviors: Saving, drinking, and playing mahjong. They found that, on average, people who were spared by the earthquake but lived closer to the epicenter tended to decrease their saving, increase their drinking, and play mahjong more often.

Are earthquake damages endogenous to human behavior?

Just as wolf damages are endogenous to pig behavior,earthquake damages are endogenous to human behavior

Earthquake intensity also depends on the geology and topography of an area, such that distance to epicenter is only a proxy for intensity, not a perfect measure of it

We also derive analytical solutions in Appendix 1

Does earthquake damage affect house rebuilding behavior?

In addition, since these behaviors arenot straightforwardly related to house rebuilding, the results also serve as a further robustness check supporting the notion that the change in behavior we observe is not driven by earthquake damages but rather by psychology

4 3

Impacts on alcohol expenditures

How did the earthquake affect the manufacturing sector?

The earthquake areas received massive aid for relief and reconstruction

The inflow of aid bid up the prices of local services and local wages

Consequently, the manufacturing sector lost competitiveness, as its product prices and wages must be in line with the national market

How do earthquakes affect economic behavior?

Research shows how a disaster can impact an economy beyond the simple rebuilding process

The Sichuan earthquake induced a lifestyle shift in households toward greater spending and shifted the economy away from industrial production

How do earthquakes shape economic behavior? | IFPRI : ,International Food Policy Research Institute

February 2021 earthquake off the Tōhoku coast in Japan

An intense and deadly seismic event struck offshore east of Tōhoku, Japan.
The MJMA  7.3 or Mw  7.1 earthquake occurred on a Saturday night at 23:07 JST on 13 February at a focal depth of 44.0 kilometers (27.3 mi).
It had a maximum JMA intensity of Shindo 6+ to Shindo 7 while on the Mercalli intensity scale, earned a rating of VIII (Severe).
The earthquake was followed by multiple aftershocks within less than an hour, three of which registering magnitude 5.3.
The earthquake itself has been considered an aftershock of the 2011 Tōhoku earthquake which had occurred almost ten years prior.

February 2021 earthquake off the Tōhoku coast in Japan

An intense and deadly seismic event struck offshore east of Tōhoku, Japan.
The MJMA  7.3 or Mw  7.1 earthquake occurred on a Saturday night at 23:07 JST on 13 February at a focal depth of 44.0 kilometers (27.3 mi).
It had a maximum JMA intensity of Shindo 6+ to Shindo 7 while on the Mercalli intensity scale, earned a rating of VIII (Severe).
The earthquake was followed by multiple aftershocks within less than an hour, three of which registering magnitude 5.3.
The earthquake itself has been considered an aftershock of the 2011 Tōhoku earthquake which had occurred almost ten years prior.

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