A dynamic spatial computable general equilibrium (CGE) approach to assess economic effects of a large earthquake in China

This study evaluates the economic impact of a major earthquake on regional economies in China. Drawing from historical data, the paper simulates an unpredicted and a predicted earthquake striking China's Bohai Economic Rim and calculate the dynamic and spatial impacts before and after each.

The author analyzes two considerations: pre-quake investments to mitigate the effects of earthquakes and post-quake expenditures to recover from them. Results show that mitigating investments accelerate economic recovery in the Bohai Rim and across all of China. This finding indicates their importance and that of spatial resilience policy in the event of an earthquake.