Alternative Schemes for Distributing Transfers to Natural Disaster Victims: Analysis and Implementation

J.R.G. Butler and D.P. Doessel

The Economic Record, 1988, vol. 64, issue 1, 47-54

Abstract: This paper outlines a scheme for distributing natural disaster relief to individuals derived from the principles of equity in taxation. This scheme is then given a specific algebraic formulation which, given a constraint on the total value of grants to be distributed, can be solved subject to grant‐making bodies determining one of two policy parameters, viz, a subsistence income level below which disaster victims would bear no damage themselves, or the rate at which grants are reduced as peoples' incomes increase. The scheme as outlined can be adapted to policy makers' different specifications of one of these two parameters. Empirical implementation of the scheme is illustrated.

Date: 1988
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