Municipalities' budgetary response to natural disasters

Carla Morvan

Working Papers from HAL

Abstract: The aim of this paper is to examine the causal impact of natural disasters on municipalities' budgetary choices. I utilize an original database that enables the study of a sample comprising all French municipalities, of which 22,972 were affected by a natural disaster between 2000 and 2019. This exploratory analysis employs two distinct dynamic methodologies: Panel Vector Autoregression model and Staggered Difference in Difference, to estimate municipal responses to natural disasters. I show that a shock leads to an increase in spending and revenues in the aftermath of the disaster, followed by a decrease from 7 to 10 years later. Furthermore, I observe that municipalities with varying financial health appear to react differently.

Keywords: Local public finance; Local expenditure; Natural disasters (search for similar items in EconPapers)
Date: 2024-12-18
New Economics Papers: this item is included in nep-env and nep-ure
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-03684732v2
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Working Paper: Municipalities' budgetary response to natural disasters (2022)
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