An economic framework for the development of a resilience index for business recovery
TL;DR: In this article, the authors examine existing resilience indices in relation to economic principles and evaluate their potential to gauge and improve post-disaster economic recovery, with a focus on businesses, and conclude that the majority of indicators in use to date are not necessarily pertinent to measuring resilience at the micro-, meso- and macroeconomic levels in the aftermath of a disaster.
Abstract: Several attempts have recently been made to identify the key indicators of community resilience and to group them into an overall resilience index. These studies support the evaluation of the effectiveness of resilience during recovery, and they also help establish a yardstick by which to monitor progress in resilience enhancement over time. We examine existing resilience indices in relation to economic principles and evaluate their potential to gauge and improve post-disaster economic recovery, with a focus on businesses. We conclude that the majority of indicators in use to date are not necessarily pertinent to measuring resilience at the micro-, meso- and macro-economic levels in the aftermath of a disaster. Contending that business behavior is the key to short-term recovery, we propose a framework for choosing appropriate short-run indicators toward the goal of developing an effective economic resilience index.
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TL;DR: The Baseline Resilience Indicators for Communities (BRIC) as discussed by the authors measure the inherent resilience of counties in the United States according to six different domains or capitals as identified in the extant literature: social, economic, housing and infrastructure, institutional, community, and environmental.
Abstract: There is increasing policy and research interest in disaster resilience, yet the extant literature is still mired in definitional debates, epistemological orientations of researchers, and differences in basic approaches to measurement. As a consequence, there is little integration across domains and disciplines on community resilience assessment, its driving forces, and geographic variability. Using US counties as the study unit, this paper creates an empirically-based resilience metric called the Baseline Resilience Indicators for Communities (BRIC) that is both conceptually and theoretically sound, yet, easy enough to compute for use in a policy context. A common set of variables were used to measure the inherent resilience of counties in the United States according to six different domains or capitals as identified in the extant literature – social, economic, housing and infrastructure, institutional, community, and environmental. Data were from public and freely accessible data sources. Counties in the US Midwest and Great Plains states have the most inherent resilience, while counties in the west, along the US-Mexico border, and along the Appalachian ridge in the east contain the least resilience. Further, it was found that inherent resilience is not the opposite of social vulnerability, but a distinctly different construct both conceptually and empirically. While understanding the overall variability in resilience, the BRIC is easily deconstructed to its component parts to provide guidance to policy makers on where investments in intervention strategies may make a difference in the improvement of scores. Such evidence-based research has an opportunity to influence public policy focused on disaster risk.
669 citations
TL;DR: The landscape of disaster resilience indicators is littered with wide range of tools, scorecards, indices, and indices that purport to measure disaster resilience in some manner as mentioned in this paper, however, there is no dominant approach across these characteristics.
Abstract: The landscape of disaster resilience indicators is littered with wide range of tools, scorecards, indices that purport to measure disaster resilience in some manner. This paper examines the existing qualitative and quantitative approaches to resilience assessment in order to delineate common concepts and variables. Twenty seven different resilience assessment tools, indices, and scorecards were examined. Four different parameters were used to distinguish between them—focus (on assets baseline conditions); spatial orientation (local to global), methodology (top down or bottom up), and domain area (characteristics to capacities). There is no dominant approach across these characteristics. In a more detailed procedure, fourteen empirically based case studies were examined that had actually implemented one of the aforementioned tools, indices, or scorecards to look for overlaps in both concepts measured and variables. The most common elements in all the assessment approaches can be divided into attributes and assets (economic, social, environmental, infrastructure) and capacities (social capital, community functions, connectivity, and planning). The greatest variable overlap in the case studies is with specific measures of social capital based on religious affiliation and civic organizations, and for health access (measured by the number of physicians). Based on the analysis a core set of attributes/assets, capacities, and proxy measures are presented as a path forward, recognizing that new data may be required to adequately measure many of the dimensions of community disaster resilience.
456 citations
Cites background from "An economic framework for the devel..."
...Sociology provides understandings of what makes social units resilient (Aldrich and Meyer 2015) and the differential capabilities inherent within them, while economics provide sector-based analyses such as business resilience (Rose and Krausmann 2013; Rose and Wei 2013)....
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...differential capabilities inherent within them, while economics provide sector-based analyses such as business resilience (Rose and Krausmann 2013; Rose and Wei 2013)....
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TL;DR: In this paper, the authors used both a systematic literature search and co-citation analysis to investigate the specific research domains of organizational resilience and its strategic and operational management to understand the current state of development and future research directions.
Abstract: This article uses both a systematic literature search and co-citation analysis to investigate the specific research domains of organizational resilience and its strategic and operational management to understand the current state of development and future research directions. The research stream on the organizational and operational management of resilience is distant from its infancy, but it can still be considered to be in a developing phase. We found evidence that the academic literature has reached a shared consensus on the definition of resilience, foundations, and characteristics and that in recent years, the main subfield of research has been supply chain resilience. Nevertheless, the literature is still far from reaching consensus on the implementation of resilience, i.e., how to reach operational resilience and how to create and maintain resilient processes. Finally, based on the results of in-depth co-citation and literature analysis, we found seven fruitful future research directions on strategic, organizational and operational resilience.
315 citations
TL;DR: The concept of resilience has been receiving both theoretical and empirical attention in recent years, from different disciplinary fields, including spatial economics where resilience is becoming a ‘popular’ term.
Abstract: The concept of resilience has been receiving both theoretical and empirical attention in recent years, from different disciplinary fields, including spatial economics where resilience is becoming a ‘popular’ term. In particular, the concept of spatial economic resilience seems to assume slightly different interpretations. Starting from the basic definitions of resilience, which stem from ecology, this paper aims to highlight the similarities and the differences in the various analyses of resilience, in order to offer some insights into its use in the spatial economics literature.
161 citations
03 May 2020
TL;DR: Transportation infrastructure plays an important role in supporting the national economy and social well-being. Extreme events have caused terrible physical damages to the transportation infrastruc... as discussed by the authors. But,
Abstract: Transportation infrastructure plays an important role in supporting the national economy and social well-being. Extreme events have caused terrible physical damages to the transportation infrastruc...
147 citations
Cites background or methods from "An economic framework for the devel..."
...For instance, Hazus-MH can perform the regional risk evaluation and loss estimation, by considering resilience factors such as inventories, excess capacity, and ability of increasing imports and exports for the indirect loss module (Rose & Krausmann, 2013; FEMA, 2016b)....
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...It has been applied to the London transportation system following the bombings in July 2005 (Cox et al., 2009; D’Lima & Medda, 2015) and the business continuity afterward considering infrastructure interdependencies (Rose & Krausmann, 2013)....
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References
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TL;DR: In this article, the authors present a conceptual framework to define seismic resilience of communities and quantitative measures of resilience that can be useful for a coordinated research effort focusing on enhancing this resilience.
Abstract: This paper presents a conceptual framework to define seismic resilience of communities and quantitative measures of resilience that can be useful for a coordinated research effort focusing on enhancing this resilience. This framework relies on the complementary measures of resilience: ‘‘Reduced failure probabilities,’’ ‘‘Reduced consequences from failures,’’ and ‘‘Reduced time to recovery.’’ The framework also includes quantitative measures of the ‘‘ends’’ of robustness and rapidity, and the ‘‘means’’ of resourcefulness and redundancy, and integrates those measures into the four dimensions of community resilience—technical, organizational, social, and economic—all of which can be used to quantify measures of resilience for various types of physical and organizational systems. Systems diagrams then establish the tasks required to achieve these objectives. This framework can be useful in future research to determine the resiliency of different units of analysis and systems, and to develop resiliency targets and detailed analytical procedures to generate these values. [DOI: 10.1193/1.1623497]
3,399 citations
TL;DR: In this article, the authors provide a methodology and a set of indicators for measuring baseline characteristics of communities that foster resilience by establishing baseline conditions, it becomes possible to monitor changes in resilience over time in particular places and to compare one place to another.
Abstract: There is considerable federal interest in disaster resilience as a mechanism for mitigating the impacts to local communities, yet the identification of metrics and standards for measuring resilience remain a challenge This paper provides a methodology and a set of indicators for measuring baseline characteristics of communities that foster resilience By establishing baseline conditions, it becomes possible to monitor changes in resilience over time in particular places and to compare one place to another We apply our methodology to counties within the Southeastern United States as a proof of concept The results show that spatial variations in disaster resilience exist and are especially evident in the rural/urban divide, where metropolitan areas have higher levels of resilience than rural counties However, the individual drivers of the disaster resilience (or lack thereof)-social, economic, institutional, infrastructure, and community capacities-vary widely
1,294 citations
"An economic framework for the devel..." refers background or methods in this paper
...[3] includes housing capital, equitable incomes, employment, business size, and position access....
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...These indicators overlap with some of those used in the RI derived by [3] and consequently suffer from the same shortcomings....
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...[3] Adapted vulnerability index Success of vulnerability index Percent employed Incomplete...
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...[3] and unites proxies for the level of economic resources (percent population employed (including female labor), homeownership, income, sales volume of businesses), economic diversity (single-sector...
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...The usefulness of most of these indicators for measuring economic resilience was already critically evaluated in this section for [3]....
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TL;DR: In this paper, a case study of the sectoral and regional economic impacts of a disruption to the Portland Metropolitan Water System in the aftermath of a major earthquake is presented, where operational definitions of individual business and regional macroeconomic resilience, linking production function parameters to various types of producer adaptations in emergencies, and decomposing partial and general equilibrium responses.
Abstract: . Recent natural and manmade disasters have had significant regional economic impacts. These effects have been muted, however, by the resilience of individual businesses and of regional markets, which refers to the inherent ability and adaptive responses that enable firms and regions to avoid potential losses. Computable general equilibrium (CGE) analysis is a promising approach to disaster impact analysis because it is able to model the behavioral response to input shortages and changing market conditions. However, without further refinement, CGE models, as well as nearly all other economic models, reflect only “business-as-usual” conditions, when they are based on historical data. This paper advances the CGE analysis of major supply disruptions of critical inputs by: specifying operational definitions of individual business and regional macroeconomic resilience, linking production function parameters to various types of producer adaptations in emergencies, developing algorithms for recalibrating production functions to empirical or simulation data, and decomposing partial and general equilibrium responses. We illustrate some of these contributions in a case study of the sectoral and regional economic impacts of a disruption to the Portland Metropolitan Water System in the aftermath of a major earthquake.
786 citations
"An economic framework for the devel..." refers background in this paper
...For example, Rose and Liao [12] have shown how conservation is linked to the productivity term, and how input and import substitution are linked Table 1 Resilience options: business (customer-side)....
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...Rose and Liao [12] also used the Tierney survey responses relating to water service disruptions to evaluate two major types of resilience: conservation of scarce inputs and enhanced ability to substitute other inputs for water....
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...For example, Rose and Liao [12] have shown how conservation is linked to the productivity term, and how input and import substitution are linked...
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TL;DR: In this article, the authors distinguish static economic resilience (efficient allocation of existing resources) from dynamic economic resilience(speeding recovery through repair and reconstruction of the capital stock) and propose operational definitions that incorporate this important distinction.
698 citations
TL;DR: This paper summarized recent progress in the conceptual and empirical modeling of resilience, including the incorporation of disequilibria and the recalibration of key behavioral parameters on the basis of empirical data.
Abstract: Three difficulties confront researchers in the resilience arena. At the conceptual level, there is the need to identify resilient actions, including those that may seem to violate established norms, such as rational behavior. At the operational level, it may be difficult to model individual, group, and community behavior in a single framework. At the empirical level, it is especially difficult to gather data on resilience to specify models. The purpose of this paper is to summarize progress on all three planes. First, defines several important dimensions of economic resilience to disasters. Second, shows how computable general equilibrium modeling represents a useful framework for analyzing the behavior of individuals, businesses, and markets. Third, summarizes recent progress in the conceptual and empirical modeling of resilience, including the incorporation of disequilibria and the recalibration of key behavioral parameters on the basis of empirical data. Fourth, uses the results of a case study to illustrate some important issues relating to the subject.
669 citations