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Free, publicly-accessible full text available September 1, 2023
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Uncertainty Analysis of Business Interruption Losses in the Philippines Due to the COVID-19 PandemicIn this study, we utilize an input–output (I–O) model to perform an ex-post analysis of the COVID-19 pandemic workforce disruptions in the Philippines. Unlike most disasters that debilitate physical infrastructure systems, the impact of disease pandemics like COVID-19 is mostly concentrated on the workforce. Workforce availability was adversely affected by lockdowns as well as by actual illness. The approach in this paper is to use Philippine I–O data for multiple years and generate Dirichlet probability distributions for the Leontief requirements matrix (i.e., the normalized sectoral transactions matrix) to address uncertainties in the parameters. Then, we estimated the workforce dependency ratio based on a literature survey and then computed the resilience index in each economic sector. For example, sectors that depend heavily on the physical presence of their workforce (e.g., construction, agriculture, manufacturing) incur more opportunity losses compared to sectors where workforce can telework (e.g., online retail, education, business process outsourcing). Our study estimated the 50th percentile economic losses in the range of PhP 3.3 trillion (with telework) to PhP 4.8 trillion (without telework), which is consistent with independently published reports. The study provides insights into the direct and indirect economic impacts of workforce disruptions in emerging economies and will contributemore »Free, publicly-accessible full text available August 1, 2023
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Water is a critical natural resource that sustains the productivity of many economic sectors, whether directly or indirectly. Climate change alongside rapid growth and development are a threat to water sustainability and regional productivity. In this paper, we develop an extension to the economic input-output model to assess the impact of water supply disruptions to regional economies. The model utilizes the inoperability variable, which measures the extent to which an infrastructure system or economic sector is unable to deliver its intended output. While the inoperability concept has been utilized in previous applications, this paper offers extensions that capture the time-varying nature of inoperability as the sectors recover from a disruptive event, such as drought. The model extension is capable of inserting inoperability adjustments within the drought timeline to capture time-varying likelihoods and severities, as well as the dependencies of various economic sectors on water. The model was applied to case studies of severe drought in two regions: (1) the state of Massachusetts (MA) and (2) the US National Capital Region (NCR). These regions were selected to contrast drought resilience between a mixed urban–rural region (MA) and a highly urban region (NCR). These regions also have comparable overall gross domestic productsmore »