which economic system works best with natural disasters?

Answer 1

none..because the economy collapses anyway.

Answer 2

That really depends upon what you mean by "works best," and it also is time dependent.

For example, if you are standing in the middle of a hurricane a command economy based upon the maintaining the status quo would inherently be best.

However, if you are talking one month later, recent research has shown that market economies work best. What actually ends up happening in government funding is enormous waste and corruption causing permanent damage to the local economic system that might not be recovered from.

So, during the emergency a command economy makes the most sense as it leaves preferences and price ratios untouched, but once non-infrastructure rebuilding starts, the government needs to step out of the way except in a judicial role. Even on the infrastructure, it needs to be to replace and fix and not an opportunity to get dollars into a legislative representative's district.