Economic Research of Natural Disaster and Public Choice for Reconstruction: Through the Survey of Empirical Studies

Abstract

　In this paper, we firstly survey empirical studies of disaster using cross country data in the field of economics. We particularly focus on two empirical hypotheses: one is that "there is a negative relationship between per capita income level of the nation and the scale of damage from natural disasters", and another is that "occurrence of natural disaster will lead to economic growth of the nation in the long run, although economic activity temporarily drops after disaster."

　Based on the survey of these studies, we also examine disaster studies focusing on local economy and industry which are related to the Great East Japan Earthquake. And by comparing those domestic and international studies, we explore implications for the way of reconstruction under population outflow and decrease. We are concerned about whether the local economy and industry will truly restore after the reconstruction projects will be completed.

　It is important for economists to estimate the true amount of indirect disaster damages in the long term, to analyze what kind of factor affects the inter-regional difference of disaster damages and reconstruction from there, and to find what kind of factor will be effective for economic growth and true reconstruction.