Few natural disasters are more costly than hurricanes in the United States. Megastorms Katrina and Sandy destroyed more than $200 billion combined – more than the entire market valuation of The Coca Cola Co. or Amazon.com. The fiscal costs of U.S. government responses are equally enormous. And yet, our understanding of the economic impacts of these storms and of competing policies’ ability to mitigate these impacts is still limited. Barrage is co-leading the development of a new Hurricane Policy Response and Impacts Simulation Model (Hurricane-PRISM), a macroeconomic growth model that incorporates hurricane shocks and policy responses (e.g., protective infrastructure, disaster relief) based on detailed data and novel empirical estimates of hurricane impact channels on economic growth.
Macroeconomic Impacts of U.S. Hurricanes and Policy Responses