Responsiveness and the resilience of Queensland economy to climatic disasters: through a Post-Keynesian lens

Chaiechi, Taha (2012) Responsiveness and the resilience of Queensland economy to climatic disasters: through a Post-Keynesian lens. In: Proceedings of the Asian Conference on Sustainability, Energy & the Environment. 0084. pp. 72-84. From: ACSEE 2012: Asian Conference on Sustainability, Energy & the Environment, 3-6 May 2012, Osaka, Japan.

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Natural disasters and their economic impacts have been neglected in the main stream of development and growth theories. Only recently a body of research into the economic effects of natural disasters began to emerge. This body of literature considers both the socio-economic impact caused by natural disasters and how the socio-economic conditions within a country prior to a natural disaster impacts on the response to disaster event when it occurs. However, most of these discussions fail to adequately integrate this relationship into a general macro-economic model. This paper attempts to analyse the dynamic effect of climatic disasters on key economic variables of the state of Queensland for the period of 1980 to 2010. A Kaleckian-Post-Keynesian multi-sectoral open economy model, which is augmented by a demand driven labour market, a reserve army effect in the Marxian sense and technological change is being utilised and econometric long run relationship between variables are investigated.

The paper predominantly emphasises on the link between climatic disasters and sources of economic growth such as state accumulation, savings, income distribution and labour market fluctuations. By employing the Structural vector autoregressive (SVAR) approach by imposing short and long-run restriction on SVAR model. The short run restrictions impose contemporaneous feedback effects among the real sector economic variables and indicators of natural disasters following the methodology described in Bernanke (1986), Blanchard and Watson (1986), and Sims (1986), and the long run restrictions in SVAR approach is an alternative to cointegration for capturing long-run equilibrium relationships.

In this study we assume that Queensland economy faces exogenous, random shocks (unexpected variation) to climate conditions, which can have substantial impact on key economic indicators, then the main intention is to examine whether key economic indicators differ significantly in their responses to climatic shocks in the medium term to long run.

Item ID: 23131
Item Type: Conference Item (Non-Refereed Research Paper)
ISSN: 2186-2311
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Date Deposited: 10 Sep 2012 05:11
FoR Codes: 14 ECONOMICS > 1402 Applied Economics > 140202 Economic Development and Growth @ 30%
14 ECONOMICS > 1402 Applied Economics > 140205 Environment and Resource Economics @ 20%
14 ECONOMICS > 1403 Econometrics > 140305 Time-Series Analysis @ 50%
SEO Codes: 91 ECONOMIC FRAMEWORK > 9101 Macroeconomics > 910199 Macroeconomics not elsewhere classified @ 50%
91 ECONOMIC FRAMEWORK > 9101 Macroeconomics > 910103 Economic Growth @ 50%
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