Recovery from natural disaster: A numerical investigation based on the convergence approach

This article employs a simple growth model, using government-funded public infrastructure and external effects to examine how the 2011 Great East Japan Earthquake and Tsunami affected economic recovery in the post-disaster period. By examining the recovery period following the disaster, we concretely consider the recovery process from various angles. Our main finding is that the speed of convergence decreases slightly, from about 5.7% to about 5.4%, after the disaster. In the disaster area, many people have concerns about the length of the recovery period. In considering the recovery progress, we also examine several economic and social policies that might help to shorten the recovery period.