ABSTRACT
In an attempt to place the economic impacts of the flood of 1993 in a broad, consistent context, this chapter provides a careful appraisal of the flood's economic consequences through a two-pronged approach: economic consequences for the state and for the nation. Given the existence of an economic model for the state of Iowa, it was possible to undertake a very detailed analysis of the economic impacts of the flood for that particular state. The loss of agricultural output will result in lost income to farmers, lost income to the agricultural service sector, lost income to the owners of local businesses that experience decreased sales, and eventually lost income to the agricultural processing sectors. One of the model's most important features is its ability to capture the ripple effects of the consequences of change or disruption in one sector on other sectors of the economy.
