EconPapers    
Economics at your fingertips  
 

Measuring the Financial Shocks of Natural Disasters: A Panel Study of U.S. States

Qing Miao, Yilin Hou and Michael Ralph Abrigo

National Tax Journal, 2018, vol. 71, issue 1, 11-44

Abstract: This paper employs panel vector autoregression to examine the dynamic fiscal response to natural disasters. With 50-state, 1970‐2013 panel data on state government finance and disaster damage, we estimate disaster impacts on revenue, expenditure, debt issuance, and federal-state transfers. We find that following a disaster, states increase program expenditure and receive more federal transfers. Disasters have limited impact on total tax revenues but amplify fluctuations in sales, income, and property tax revenues. Our findings suggest that disaster-induced additional spending is largely financed through federal transfers, which include not only disaster relief funds but also non-disaster-related public welfare assistance.

Date: 2018
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://ntanet.org/NTJ/71/1/ntj-v71n01p11-44.html (text/html)
Access to most recent volumes (current and past two years) is restricted to subscribers and members of the National Tax Association.

Related works:
Working Paper: Measuring the Financial Shocks of Natural Disasters: A Panel Study of U.S. States (2016) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ntj:journl:v:71:y:2018:i:1:p:11-44

Access Statistics for this article

National Tax Journal is currently edited by Stacy Dickert-Conlin and William M. Gentry

More articles in National Tax Journal from National Tax Association, National Tax Journal Contact information at EDIRC.
Bibliographic data for series maintained by Sally Sztrecska ().

 
Page updated 2020-07-28
Handle: RePEc:ntj:journl:v:71:y:2018:i:1:p:11-44