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作者

Rhiannon Jerch;Matthew E. Kahn;Gary C. Lin

来源

来源 JOURNAL OF URBAN ECONOMICS,Vol.134,P.

语言

英文

关键字

Local government budgets;Local government bonds;Natural disasters;H71;H72;H74;Q54

作者单位

Economics at Temple University;University of Southern California;NBER;Unison Consulting;Economics at Temple University;University of Southern California;NBER;Unison Consulting

摘要

Since 1980, over 2,000 local governments in US Atlantic states have been hit by a hurricane. We study local government fiscal dynamics in the aftermath of hurricanes. These shocks reduce tax revenues, public expenditures, and debt financing in the decade following a hurricane. Hurricanes create collateral fiscal damage for local governments by increasing the cost of debt at critical moments after a strike. Municipalities with a 1 standard deviation-above-average racial minority composition suffer expenditure losses more than 2 times larger and debt default risk 8 times larger than the average municipalities in the decade following a hurricane strike.