Political Economy of Disasters

Natural disasters cause widespread human fatalities and damage to public and private properties. With the increasing global warming problems, natural disasters will likely rise in the coming years. Although disaster events are beyond human control, the extent of disaster preparedness and response activities play a crucial role in minimizing the extent of human fatalities and disaster-related damages. For instance, national governments care about the well-being of citizens and, at the same time, want to maximize revenue, which urges the government to spend on disaster prevention to reduce the impact of natural shock.