Maison Franco-Japonaise
Japan has historically been plagued by floods. In recent years as well, there have been a series of large-scale floods that have caused direct damage in excess of JPY 1 trillion to tangible fixed assets nationwide. We combine the granular data on flood damage and land prices with macroeconomic variables to quantitatively assess the indirect impacts, i.e., secondary impacts of the direct effects, of floods on economic activity, land prices and financial intermediation. We also present tentative projections on how floods will affect economic activity in the future, using climate change estimates from an external organization.
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