Measurement of Fiscal Vulnerability from Natural Disasters – The Case of Albania

Gerdi LITO

doi:doi:10.11648/j.ijefm.20130106.15

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Measurement of Fiscal Vulnerability from Natural Disasters – The Case of Albania

Gerdi LITO

Published in International Journal of Economics, Finance and Management Sciences (Volume 1, Issue 6)

Received: 30 September 2013 Published: 30 October 2013

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Abstract

Natural disasters bring destruction and severe effects in the countries they hit. In small countries like Albania, where the insurance market is underdeveloped, the main role in absorbing disaster effects is often responsibility of the government. In this approach, the government is exposed from a fiscal point of view to the risk of natural disasters. This paper aims to measure the level of fiscal vulnerability in a country like Albania, caused by disasters that time after time hit the region, such as earthquakes or flood. This has been realized by calculating the disaster deficit index for earthquakes and flood, and the annual expected average loss from earthquakes. The results show for a high level of fiscal vulnerability in case of floods with a return period of 100 years and in case of earthquakes with a magnitude higher than 6.5 on Richter scale.

Published in	International Journal of Economics, Finance and Management Sciences (Volume 1, Issue 6)
DOI	10.11648/j.ijefm.20130106.15
Page(s)	292-298
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2013. Published by Science Publishing Group

Keywords

Disaster, Fiscal Vulnerability, Risk, Disaster Deficit Index

References

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[2]	Aliaj, Sh. Koçiu, S. Muço B. Sulstratova E. (2010). Sizmiciteti, sizmotektonika dhe vlerësimi i rrezikut sizmik në Shqipëri, Tiranë: Akademia e Shkencave të Shqipërisë.
[3]	Arrow K & Lind R. (1970) Uncertainty and the evaluation of public investment decisions, The American Economic Review 60, 364-378.
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[6]	Briguglio L. (2003) The Vulnerability Index and Small Island Developing States: A Review of Conceptual and Methodological Issues, Paper prepared for the AIMS Regional Preparatory Meeting on the Ten Year Review of the Barbados Programme of Action: Praia, Cape Verde
[7]	Briguglio L. (2004) Economic Vulnerability and Resilience: Concepts and Measurements." In Briguglio, L. and Kisanga, E.J. ( eds) Economic Vulnerability and Resilience of Small States, Malta: Islands and Small States Institute and London: Commonwealth Secretariat
[8]	Cannon T. (2003) Vulnerability analysis, livelihoods and disaster components and variables of vulnerability: Modeling and analysis for disaster risk management, IBD/IDEA Program of Indicators for Risk Management.
[9]	Cardona O. Hurtado J. Duque G. Moreno A Chardon A. Velasquez L & Prieto S. (2004a) Disaster risk and risk management benchmarking: A methodology based on indicators at National level. IDB/IDEA Program of indicators for Disaster Risk management National University of Colombia, Manizales.
[10]	Cardona O. (2007, March 23-24). A system of indicators for disaster risk management in the Americas. Globalization, diversity and inequality in Latin America: The challenges, opportunities and dangers (p. 53-72). University of Pittsburgh.
[11]	Cardona O. & Carreno G. (2011) Updating the indicators for disaster risk and risk management for the Americas. Journal of integrated disaster risk management Nr 1(1) DOI: 10.5595/idrim.2011.0014.
[12]	Grossi P. & Kunreuther H. (2005) Catastrophe modeling: a new approach to managing risk, Springer.
[13]	Lito G. (2013). Një model agregat vlerësimi i riskut të katastrofave natyrore në Shqipëri. Revista Shqiptare Social-Ekonomike, Nr 1 (74) 211-220.
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[16]	Selenica A. & Bogdani M. (1996) Catastrophic floods and their risk in rivers of Albania, Destructive Water: Water-caused natural disasters, their abatement and control, Conference proceedings, IAHS n.239.
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APA Style

Gerdi LITO. (2013). Measurement of Fiscal Vulnerability from Natural Disasters – The Case of Albania. International Journal of Economics, Finance and Management Sciences, 1(6), 292-298. https://doi.org/10.11648/j.ijefm.20130106.15

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ACS Style

Gerdi LITO. Measurement of Fiscal Vulnerability from Natural Disasters – The Case of Albania. Int. J. Econ. Finance Manag. Sci. 2013, 1(6), 292-298. doi: 10.11648/j.ijefm.20130106.15

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AMA Style

Gerdi LITO. Measurement of Fiscal Vulnerability from Natural Disasters – The Case of Albania. Int J Econ Finance Manag Sci. 2013;1(6):292-298. doi: 10.11648/j.ijefm.20130106.15

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@article{10.11648/j.ijefm.20130106.15,
  author = {Gerdi LITO},
  title = {Measurement of Fiscal Vulnerability from Natural Disasters – The Case of Albania},
  journal = {International Journal of Economics, Finance and Management Sciences},
  volume = {1},
  number = {6},
  pages = {292-298},
  doi = {10.11648/j.ijefm.20130106.15},
  url = {https://doi.org/10.11648/j.ijefm.20130106.15},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20130106.15},
  abstract = {Natural disasters bring destruction and severe effects in the countries they hit. In small countries like Albania, where the insurance market is underdeveloped, the main role in absorbing disaster effects is often responsibility of the government. In this approach, the government is exposed from a fiscal point of view to the risk of natural disasters. This paper aims to measure the level of fiscal vulnerability in a country like Albania, caused by disasters that time after time hit the region, such as earthquakes or flood. This has been realized by calculating the disaster deficit index for earthquakes and flood, and the annual expected average loss from earthquakes. The results show for a high level of fiscal vulnerability in case of floods with a return period of 100 years and in case of earthquakes with a magnitude higher than 6.5 on Richter scale.},
 year = {2013}
}

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TY  - JOUR
T1  - Measurement of Fiscal Vulnerability from Natural Disasters – The Case of Albania
AU  - Gerdi LITO
Y1  - 2013/10/30
PY  - 2013
N1  - https://doi.org/10.11648/j.ijefm.20130106.15
DO  - 10.11648/j.ijefm.20130106.15
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JO  - International Journal of Economics, Finance and Management Sciences
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AB  - Natural disasters bring destruction and severe effects in the countries they hit. In small countries like Albania, where the insurance market is underdeveloped, the main role in absorbing disaster effects is often responsibility of the government. In this approach, the government is exposed from a fiscal point of view to the risk of natural disasters. This paper aims to measure the level of fiscal vulnerability in a country like Albania, caused by disasters that time after time hit the region, such as earthquakes or flood. This has been realized by calculating the disaster deficit index for earthquakes and flood, and the annual expected average loss from earthquakes. The results show for a high level of fiscal vulnerability in case of floods with a return period of 100 years and in case of earthquakes with a magnitude higher than 6.5 on Richter scale.
VL  - 1
IS  - 6
ER  -

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Author Information

Gerdi LITO

Department of Finance, University of Tirana, Faculty of Economics

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APA Style

Gerdi LITO. (2013). Measurement of Fiscal Vulnerability from Natural Disasters – The Case of Albania. International Journal of Economics, Finance and Management Sciences, 1(6), 292-298. https://doi.org/10.11648/j.ijefm.20130106.15

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ACS Style

Gerdi LITO. Measurement of Fiscal Vulnerability from Natural Disasters – The Case of Albania. Int. J. Econ. Finance Manag. Sci. 2013, 1(6), 292-298. doi: 10.11648/j.ijefm.20130106.15

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AMA Style

Gerdi LITO. Measurement of Fiscal Vulnerability from Natural Disasters – The Case of Albania. Int J Econ Finance Manag Sci. 2013;1(6):292-298. doi: 10.11648/j.ijefm.20130106.15

Copy | Download

@article{10.11648/j.ijefm.20130106.15,
  author = {Gerdi LITO},
  title = {Measurement of Fiscal Vulnerability from Natural Disasters – The Case of Albania},
  journal = {International Journal of Economics, Finance and Management Sciences},
  volume = {1},
  number = {6},
  pages = {292-298},
  doi = {10.11648/j.ijefm.20130106.15},
  url = {https://doi.org/10.11648/j.ijefm.20130106.15},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20130106.15},
  abstract = {Natural disasters bring destruction and severe effects in the countries they hit. In small countries like Albania, where the insurance market is underdeveloped, the main role in absorbing disaster effects is often responsibility of the government. In this approach, the government is exposed from a fiscal point of view to the risk of natural disasters. This paper aims to measure the level of fiscal vulnerability in a country like Albania, caused by disasters that time after time hit the region, such as earthquakes or flood. This has been realized by calculating the disaster deficit index for earthquakes and flood, and the annual expected average loss from earthquakes. The results show for a high level of fiscal vulnerability in case of floods with a return period of 100 years and in case of earthquakes with a magnitude higher than 6.5 on Richter scale.},
 year = {2013}
}

Copy | Download

TY  - JOUR
T1  - Measurement of Fiscal Vulnerability from Natural Disasters – The Case of Albania
AU  - Gerdi LITO
Y1  - 2013/10/30
PY  - 2013
N1  - https://doi.org/10.11648/j.ijefm.20130106.15
DO  - 10.11648/j.ijefm.20130106.15
T2  - International Journal of Economics, Finance and Management Sciences
JF  - International Journal of Economics, Finance and Management Sciences
JO  - International Journal of Economics, Finance and Management Sciences
SP  - 292
EP  - 298
PB  - Science Publishing Group
SN  - 2326-9561
UR  - https://doi.org/10.11648/j.ijefm.20130106.15
AB  - Natural disasters bring destruction and severe effects in the countries they hit. In small countries like Albania, where the insurance market is underdeveloped, the main role in absorbing disaster effects is often responsibility of the government. In this approach, the government is exposed from a fiscal point of view to the risk of natural disasters. This paper aims to measure the level of fiscal vulnerability in a country like Albania, caused by disasters that time after time hit the region, such as earthquakes or flood. This has been realized by calculating the disaster deficit index for earthquakes and flood, and the annual expected average loss from earthquakes. The results show for a high level of fiscal vulnerability in case of floods with a return period of 100 years and in case of earthquakes with a magnitude higher than 6.5 on Richter scale.
VL  - 1
IS  - 6
ER  -

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