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In August and October 2016, and January 2017, Central Italy was shaken by four strong earthquakes followed by other earthquake swarms. These disruptive phenomena, besides bringing devastation in the territory directly involved, caused economic blackouts to important transactions among activities, with consequent different reactions in the economic performance of the whole country. Therefore, the overall economic impact of a disaster should encompass the complete representation of phenomenon, and requires an analytical framework to depict the circular flow of income in all its phases. In this perspective, the current study presents an evolution of the inoperability input–output model by introducing a new approach of bi-regional inoperability extended multisectoral model. This allows assessing the intra-regional and the inter-regional effects of the earthquakes in the production processes and in the institutional sectors disposable incomes of two Italian macro areas, the North-Centre and the South-Islands. [ABSTRACT FROM AUTHOR]