Abstract
Rapid unmanaged growth of population and properties in metropolitan areas has increased the societal vulnerability to disasters. While the first step in disaster economic risk management is the quantification of economic losses, modeling unexpected events by equilibrium-oriented economic models which assume gradual and incremental changes over time and uniform spatial impacts poses analytical challenges. In this paper an integrated, operational methodology for evaluating the effects of earthquake on the economy based on the various types of losses and their relations is developed. A case study of Tehran shows future losses caused by studied earthquake scenarios will be more than 70% of gross regional product (GRP). Finally, a number of solutions for reducing negative impacts are introduced.
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