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When oceans attack: assessing the impact of hurricanes on localized taxable sales

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  • Ariel Belasen
  • Chifeng Dai

Abstract

We examine the impact of hurricanes in Florida on county-level taxable sales revenues. Conditional on the strength of the hurricane, within 6 months after a hurricane strikes a county, revenues decline as much as 17 %, whereas revenues in neighboring counties increase by upward of 17 % over that same time frame. This decline in revenue is found to be dependent on the commercial makeup of a hurricane-stricken county. Particular focus is given to tourism-related subsectors within the local economy. Finally, we show that along the pathways of hurricanes, initially hit counties face a more severe burden, ranging as high as a 33 % immediate decline in taxable revenues in 1 month for coastal counties. As the hurricane weakens, the direct impact is lessened; however, there is evidence of spillover damage in neighboring areas. Copyright Springer-Verlag Berlin Heidelberg 2014

Suggested Citation

  • Ariel Belasen & Chifeng Dai, 2014. "When oceans attack: assessing the impact of hurricanes on localized taxable sales," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 52(2), pages 325-342, March.
    • Handle: RePEc:spr:anresc:v:52:y:2014:i:2:p:325-342
    DOI: 10.1007/s00168-013-0587-8
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    References listed on IDEAS

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    1. Eric Strobl, 2011. "The Economic Growth Impact of Hurricanes: Evidence from U.S. Coastal Counties," The Review of Economics and Statistics, MIT Press, vol. 93(2), pages 575-589, May.
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    6. Ariel R. Belasen & Solomon W. Polachek, 2008. "How Hurricanes Affect Wages and Employment in Local Labor Markets," American Economic Review, American Economic Association, vol. 98(2), pages 49-53, May.
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    Cited by:

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    More about this item

    Keywords

    H71; R11;

    JEL classification:

    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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