Economic effects of earthquakes: focusing on the health sector
by Ghazal Shahpari; Hossein Sadeghi; Malihe Ashena; Mehran Shahpari
International Journal of Economic Policy in Emerging Economies (IJEPEE), Vol. 14, No. 1, 2021

Abstract: This paper aims to clarify the effects of earthquake as a shock to the Iran's economy providing policy makers with insight in the impacts of such shocks. Using CGE approach, it proposes modelling the reduction of capital stock stem from the earthquake and outlining its effects on the GDP, health sectors and household's welfare. Based on simulation results, the GDP decrease and the rate of reduction depend on the severity of the earthquake. Supply side of health sector is affected more than demand side, due to the fact that healthcare centres destroy aftermath of earthquakes. Household's welfare reduces after earthquake and the urban population are more vulnerable.

Online publication date: Mon, 21-Dec-2020

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