Private Markets and Public Assistance for Natural Disaster Supplies

Michael Dinerstein, Nadia Lucas, Ishan Nath and Johanna Rayl

AEA Papers and Proceedings, 2025, vol. 115, 385-90

Abstract: We document existing allocation mechanisms for natural disaster survival goods, such as flashlights, batteries, food, and water and show that Americans face widespread and frequent exposure to natural disasters, that disasters bring a substantial risk of power outages with a range of possible consequences, and that many households lack the necessary supplies on hand. Those who are unprepared are also especially likely to be low income and liquidity constrained. We show that federal aid provides substantial direct provision of key disaster supplies but that most immediate procurement occurs in the private retail market, suggesting a potential role for policy interventions.

JEL-codes: D12 G51 H57 H76 I38 Q54 (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1257/pandp.20251038

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