Depreciation of Capital due to Natural Disaster and Adjusted Net
Domestic Product
- Amarendra Das,
- Dasarathi Padhan,
- Chinmayee Sahoo
Abstract
This paper tries to account for the economic loss due to natural
disasters, as the depreciation of capital and provide the adjusted
estimate of NDP. Systematic data on economic loss due to natural
disasters are limited for all Indian states. Therefore, this paper
provides a methodological framework for accounting for the depreciation
of the capital due to natural disasters for all Indian states and
provides an approximate estimate of adjusted NDP for all Indian states.
Due to availability of systematic data on the economic loss due to
natural disasters, time series estimate of adjusted NDP are provided for
Odisha state which experiences maximum climatic natural disasters.
Calculation of adjusted NDP will be very much useful for fiscal transfer
from Union to States and other economic policy making.