ABSTRACT
This chapter reviews literature on business and economic impacts of disasters, pointing out that businesses are vulnerable to the impacts of disasters; however, aggregate economies tend to be quite resilient to these shocks. This paradox is explained and discussed. After a disaster, business owners strive to bring back their businesses. But should business recovery be a goal for the society in general? Based on welfare economics principles, this chapter provides reasons both for and against public assistance to businesses, and provides some suggestions for practice.
