“How Sandy will Impact Our Economy,” an article by Joseph Seneca, University Professor; Nancy Mantell, Director of R/ECON; Michael Lahr, Bloustein Associate Research Professor; and Will Irving, Bloustein Research Associate in the April 2013 of New Jersey Municipalities, the magazine published by the New Jersey State League of Municipalities, summarizes research the group conducted in January 2013 in an effort to address the economic and fiscal impacts of Hurricane Sandy on New Jersey.
When measuring losses in economic activity, they found that initial unemployment claims for the five-week period after the storm were approximately 100,o00 higher than in the four-week period before the storm; and the state’s total gross domestic product loss following the storm was approximately $11.66 billion. Negative overall effects were also seen in employment, personal income, and state tax revenues.
Using estimates of expenditures on emergency response during Sandy, and the subsequent restoration and rebuilding, the researchers found that the resulting net impacts on the economy in those same areas is greatly improved.
Even with significant federal aid and private insurance payments, however, the researchers caution that overall capital losses to homeowners, business, and the public infrastructure will likely not be fully offset.
The complete article can be found in the April 2013 issue of New Jersey Municipalities and can be obtained by contacting the New Jersey State League of Municipalities. The article is based on research in the January 2013 Rutgers Regional Report, Issue #34, The Economic and Fiscal Impacts of Hurricane Sandy in New Jersey: A Macroeconomic Analysis.