USC Price School of Public Policy

Event Details

The Indirect Effects of Hurricanes: Evidence from Firm Internal Networks

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Verna and Peter Dauterive Hall (VPD) (Map)
302

Solutions Lab for a Sustainable and Equitable Future

The Indirect Effects of Hurricanes: Evidence from Firm Internal Networks

 

Abstract: Are the effects of hurricanes spatially mitigated or propagated by firms through their internal network of establishments? This paper quantifies the indirect spatial impacts of hurricanes by examining linkages that arise between disrupted and undisrupted regions via plant ties within firms. For a typical county hit by a hurricane in the United States, for every manufacturing job lost upon exposure, I estimate that an additional 0.19 to 0.25 manufacturing jobs are lost across undisrupted distant regions due to spatial propagation within multi-plant firms. The spatial propagation is consistent with mechanisms of resource-constraints and managerial distraction within the firm. Overall, the results indicate that we potentially underestimate the effects of hurricanes by ignoring inter-regional linkages emerging from firms’ internal networks.

 

Bio: Ishuwar Seetharam is a Ph.D. Candidate in The Department of Economics at Stanford University. His research is at the intersection of big data and solving general equilibrium models.

 

The speaker, Ishuwar Seetharam from Stanford University, is also available for meetings on Tuesday, 2/13. Should you be interested in meeting with him, please contact Richard Parks at richard@usc.edu.