IMF economist analyses effect of floods and storms on Caribbean debt-to-GDP
A new paper from the International Monetary Fund seeks to determine the effects that natural disasters have on per capita GDP and on the debt-to-GDP ratio in the Caribbean – focusing on storms and floods, given their prevalence in the region.
In Debt, growth and natural disasters: a Caribbean trilogy, Sebastian Acevedo Mejia uses a vector autoregressive model with exogenous natural disasters shocks, in a panel of 12 Caribbean countries over a period of 40 years.
His results show that both storms
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