Abstract:
Meteorological disasters trigger enormous damages on the economic system, of which the destructiveness is usually ignored as it is potential and tricky. It leads errors in the administrative decision, because the omission of indirect disaster loss is ofen in large proportion. The authors suggest that the industry interdependent loss is the core of indirect economic loss, which is explored based on a proposed conceptual model. The indirect economic loss is influenced by following four mechanisms:demand fluctuation, supply regulation, price change and substitution functions in economic system. Input-output (I-O) model and computable general equilibrium (CGE) model are the appropriate approaches for evaluating indirect economic loss resulted from the extreme meteorological disaster on condition that the flexibility is attached to I-0 models and the substitution elasticity is reduced in CGEs.