Measuring the Financial Shocks of Natural Disasters: A Panel Study of U.S. States
Yilin Hou (),
Qing Miao and
Michael Ralph Abrigo
Additional contact information
Yilin Hou: Center for Policy Research, Maxwell School, Syracuse University, 426 Eggers Hall, Syracuse, NY 13244, https://www.maxwell.syr.edu/cpr/
Qing Miao: Center for Science, Technology, and Environmental Policy Studies, School of Public Affairs, Arizona State University
No 199, Center for Policy Research Working Papers from Center for Policy Research, Maxwell School, Syracuse University
This paper employs panel vector autoregression to examine the dynamic fiscal response to disaster shocks. With 50-state, 1970-2013 panel data of state government finance and disaster damage, we estimate disaster impacts on revenue, expenditure, debt issuance, and intergovernmental transfers. We find that following a disaster, states increase program expenditure, but 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 aids.
Keywords: Natural Disaster; Panel Vector Autoregression; Intergovernmental Transfer (search for similar items in EconPapers)
JEL-codes: Q54 H7 H30 H12 H53 (search for similar items in EconPapers)
Pages: 39 pages
New Economics Papers: this item is included in nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
https://www.maxwell.syr.edu/uploadedFiles/cpr/publ ... ng_papers2/wp199.pdf (application/pdf)
Journal Article: Measuring the Financial Shocks of Natural Disasters: A Panel Study of U.S. States (2018)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:max:cprwps:199
Access Statistics for this paper
More papers in Center for Policy Research Working Papers from Center for Policy Research, Maxwell School, Syracuse University 426 Eggers Hall, Syracuse, New York USA 13244-1020. Contact information at EDIRC.
Bibliographic data for series maintained by Margaret Austin ().