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Macroeconomic impact of natural disasters on a small island economy: evidence from a CGE model

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Natural disasters are common in the Pacific Island countries. Fiji has been affected by many of these disasters. The most recent cyclone exerted substantial damage to infrastructure, agricultural and industrial activity in Fiji. The aim of this article is to incorporate these damages into Fiji's computable general equilibrium model and examine the short-run macroeconomic impact. Among the key results, it is found that cyclones negatively impact private income, consumption, savings, real GDP and real national welfare.
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Document Type: Research Article

Affiliations: Department of Economics, PO Box 11E, Monash University, Victoria 3800, Australia, Email: [email protected]

Publication date: September 15, 2003

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