Title: Economic effects of earthquakes: focusing on the health sector

Authors: Ghazal Shahpari; Hossein Sadeghi; Malihe Ashena; Mehran Shahpari

Addresses: Management and Economics Department, Tarbiat Modares University, Tehran, Iran ' Management and Economics Department, Tarbiat Modares University, Tehran, Iran ' Faculty of Humanities, Bozorgmehr University of Qaenat, Qaen, 9761986844, Iran ' Science and Culture University, Tehran, Iran

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.

Keywords: earthquakes; health; welfare; computable general equilibrium models.

DOI: 10.1504/IJEPEE.2021.111935

International Journal of Economic Policy in Emerging Economies, 2021 Vol.14 No.1, pp.85 - 100

Accepted: 01 Mar 2020
Published online: 04 Dec 2020 *

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