IDEAS home Printed from https://ideas.repec.org/a/uwp/landec/v89y2013i1p101-117.html
   My bibliography  Save this article

Natural Disaster Impacts and Fiscal Decentralization

Author

Listed:
  • Mark Skidmore
  • Hideki Toya

Abstract

In recent years, many developing countries have sought to implement more decentralized governmental systems. Despite efforts toward fiscal federalism, assessment of decentralization activity has been hampered by lack of consistent cross-country measures of effectiveness. Since governments play a central role in the management of catastrophic events, disaster impact data provide an opportunity to evaluate whether government structure is important in limiting disaster losses. We use cross-country data over the 1970–2005 period to estimate the relationship between decentralization and disaster casualties; countries with more decentralized governments experience fewer disaster-induced fatalities.

Suggested Citation

  • Mark Skidmore & Hideki Toya, 2013. "Natural Disaster Impacts and Fiscal Decentralization," Land Economics, University of Wisconsin Press, vol. 89(1), pages 101-117.
  • Handle: RePEc:uwp:landec:v:89:y:2013:i:1:p:101-117
    as

    Download full text from publisher

    File URL: http://le.uwpress.org/cgi/reprint/89/1/101
    Download Restriction: A subscripton is required to access pdf files. Pay per article is available.
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Alderman, H., 1998. "Social Assistance in Albania. Decentralization and Targeted Transfers," Papers 134, World Bank - Living Standards Measurement.
    2. Barankay, Iwan & Lockwood, Ben, 2007. "Decentralization and the productive efficiency of government: Evidence from Swiss cantons," Journal of Public Economics, Elsevier, vol. 91(5-6), pages 1197-1218, June.
    3. BOAVENTURA de SOUSA SANTOS, 1998. "Participatory Budgeting in Porto Alegre: Toward a Redistributive Democracy," Politics & Society, , vol. 26(4), pages 461-510, December.
    4. anonymous, 2005. "Focus on Authors," Marketing Science, INFORMS, vol. 24(3), pages 518-522.
    5. Honore, Bo E, 1992. "Trimmed LAD and Least Squares Estimation of Truncated and Censored Regression Models with Fixed Effects," Econometrica, Econometric Society, vol. 60(3), pages 533-565, May.
    6. Brueckner, Jan K., 2006. "Fiscal federalism and economic growth," Journal of Public Economics, Elsevier, vol. 90(10-11), pages 2107-2120, November.
    7. Arzaghi, Mohammad & Henderson, J. Vernon, 2005. "Why countries are fiscally decentralizing," Journal of Public Economics, Elsevier, vol. 89(7), pages 1157-1189, July.
    8. Cragg, John G, 1971. "Some Statistical Models for Limited Dependent Variables with Application to the Demand for Durable Goods," Econometrica, Econometric Society, vol. 39(5), pages 829-844, September.
    9. Fisman, Raymond & Gatti, Roberta, 2002. "Decentralization and corruption: evidence across countries," Journal of Public Economics, Elsevier, vol. 83(3), pages 325-345, March.
    10. anonymous, 2010. "Focus on Authors," Marketing Science, INFORMS, vol. 29(5), pages 958-961, 09-10.
    11. Toya, Hideki & Skidmore, Mark, 2007. "Economic development and the impacts of natural disasters," Economics Letters, Elsevier, vol. 94(1), pages 20-25, January.
    12. World Bank, 2006. "World Development Indicators 2006," World Bank Publications - Books, The World Bank Group, number 8151.
    13. anonymous, 2010. "Focus on Authors," Marketing Science, INFORMS, vol. 29(4), pages 779-782, 07-08.
    14. Mark Skidmore & Hideki Toya, 2013. "Natural Disaster Impacts and Fiscal Decentralization," Land Economics, University of Wisconsin Press, vol. 89(1), pages 101-117.
    15. Thomas Birkland & Sarah Waterman, 2008. "Is Federalism the Reason for Policy Failure in Hurricane Katrina?," Publius: The Journal of Federalism, CSF Associates Inc., vol. 38(4), pages 692-714, Fall.
    16. Skidmore, Mark, 2001. "Risk, natural disasters, and household savings in a life cycle model," Japan and the World Economy, Elsevier, vol. 13(1), pages 15-34, January.
    17. Matthew E. Kahn, 2005. "The Death Toll from Natural Disasters: The Role of Income, Geography, and Institutions," The Review of Economics and Statistics, MIT Press, vol. 87(2), pages 271-284, May.
    18. World Bank, 2003. "World Development Indicators 2003," World Bank Publications - Books, The World Bank Group, number 13920.
    19. Albala-Bertrand, J. M., 1993. "Political Economy of Large Natural Disasters: With Special Reference to Developing Countries," OUP Catalogue, Oxford University Press, number 9780198287650.
    20. Anbarci, Nejat & Escaleras, Monica & Register, Charles A., 2005. "Earthquake fatalities: the interaction of nature and political economy," Journal of Public Economics, Elsevier, vol. 89(9-10), pages 1907-1933, September.
    21. F. Javier Arze del Granado & Jorge Martinez-Vazquez & Robert McNab, 2005. "Fiscal Decentralization and The Functional Composition of Public Expenditures (2005)," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0501, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    22. Kellenberg, Derek K. & Mobarak, Ahmed Mushfiq, 2008. "Does rising income increase or decrease damage risk from natural disasters?," Journal of Urban Economics, Elsevier, vol. 63(3), pages 788-802, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Eiji Yamamura, 2012. "Death tolls from natural disasters: Influence of interactions among fiscal decentralization, institutions and economic development," EERI Research Paper Series EERI_RP_2012_08, Economics and Econometrics Research Institute (EERI), Brussels.
    2. Lim, Jungmin & Loveridge, Scott & Shupp, Robert & Skidmore, Mark, 2017. "Double danger in the double wide: Dimensions of poverty, housing quality and tornado impacts," Regional Science and Urban Economics, Elsevier, vol. 65(C), pages 1-15.
    3. van Bergeijk, P.A.G. & Lazzaroni, S., 2013. "Macroeconomics of natural disasters," ISS Working Papers - General Series 50075, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.
    4. Santosh Pathak & Hari Krishna Panta & Thaneshwar Bhandari & Krishna P. Paudel, 2020. "Flood vulnerability and its influencing factors," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 104(3), pages 2175-2196, December.
    5. Lazzaroni, Sara & van Bergeijk, Peter A.G., 2014. "Natural disasters' impact, factors of resilience and development: A meta-analysis of the macroeconomic literature," Ecological Economics, Elsevier, vol. 107(C), pages 333-346.
    6. Yamamura, Eiji, 2012. "Natural disasters and their long-term effect on happiness: the case of the great Hanshin-Awaji earthquake," MPRA Paper 37505, University Library of Munich, Germany.
    7. Eiji Yamamura, 2013. "Natural Disasters and Participation in Volunteer Activities: A Case Study of the Great Hanshin-Awaji Earthquake," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 84(1), pages 103-117, March.
    8. Fernanda Andrade de Xavier & Pranab Mukhopadhyay, 2023. "Can Fiscal Transfers Help India Meet Its SDG Goals?," South Asian Journal of Macroeconomics and Public Finance, , vol. 12(2), pages 218-249, December.
    9. Luiz de Mello & João Tovar Jalles, 2022. "Natural disasters, epidemics and intergovernmental relations: More or less decentralisation?," Working Papers REM 2022/0248, ISEG - Lisbon School of Economics and Management, REM, Universidade de Lisboa.
    10. Kaddour Mehiriz & Pierre Gosselin, 2016. "Municipalities' Preparedness for Weather Hazards and Response to Weather Warnings," PLOS ONE, Public Library of Science, vol. 11(9), pages 1-17, September.
    11. Richard S. J. Tol, 2021. "The Economic Impact of Climate in the Long Run," World Scientific Book Chapters, in: Anil Markandya & Dirk Rübbelke (ed.), CLIMATE AND DEVELOPMENT, chapter 1, pages 3-36, World Scientific Publishing Co. Pte. Ltd..
    12. Lohse, Tim & Robledo, Julio R., 2012. "Public self-insurance and the Samaritan's dilemma in a federation," Discussion Papers, Research Professorship & Project "The Future of Fiscal Federalism" SP II 2012-103, WZB Berlin Social Science Center.
    13. Hiroki Onuma & Kong Joo Shin & Shunsuke Managi, 2017. "Reduction of future disaster damages by learning from disaster experiences," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 87(3), pages 1435-1452, July.
    14. Qing Miao & Yu Shi & Meri Davlasheridze, 2021. "Fiscal Decentralization and Natural Disaster Mitigation: Evidence from the United States," Public Budgeting & Finance, Wiley Blackwell, vol. 41(1), pages 26-50, March.
    15. Hiroki Onuma & Kong Joo Shin & Shunsuke Managi, 2021. "Short-, Medium-, and Long-Term Growth Impacts of Catastrophic and Non-catastrophic Natural Disasters," Economics of Disasters and Climate Change, Springer, vol. 5(1), pages 53-70, April.
    16. Yamamura, Eiji, 2011. "Effect of free media on views regarding the safety of nuclear energy after the 2011 disasters in Japan: evidence using cross-country data," MPRA Paper 32011, University Library of Munich, Germany.
    17. Mark Skidmore & Hideki Toya, 2013. "Natural Disaster Impacts and Fiscal Decentralization," Land Economics, University of Wisconsin Press, vol. 89(1), pages 101-117.
    18. Yunji Kim & Yeong Ah Jeong, 2023. "The role of local governments in South Korea's COVID‐19 response," Public Administration & Development, Blackwell Publishing, vol. 43(2), pages 120-128, May.
    19. Yamamura, Eiji, 2012. "Death tolls from natural disasters: Influence of interactions between fiscal decentralization, institution, and economic development," MPRA Paper 36987, University Library of Munich, Germany.
    20. Eiji Yamamura, 2015. "The Impact of Natural Disasters on Income Inequality: Analysis using Panel Data during the Period 1970 to 2004," International Economic Journal, Taylor & Francis Journals, vol. 29(3), pages 359-374, September.
    21. Timothy J. Goodspeed, 2013. "Decentralization and Natural Disasters," CESifo Working Paper Series 4179, CESifo.
    22. Tim Lohse & Julio R. Robledo, 2013. "Public Self-Insurance and the Samaritan’s Dilemma in a Federation," Public Finance Review, , vol. 41(1), pages 92-120, January.
    23. Hideki Toya & Mark Skidmore, 2014. "Do Natural Disasters Enhance Societal Trust?," Kyklos, Wiley Blackwell, vol. 67(2), pages 255-279, May.
    24. Yamamura, Eiji, 2013. "Impact of natural disasters on income inequality: Analysis using panel data during the period 1965 to 2004," MPRA Paper 45623, University Library of Munich, Germany.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Eiji Yamamura, 2012. "Death tolls from natural disasters: Influence of interactions among fiscal decentralization, institutions and economic development," EERI Research Paper Series EERI_RP_2012_08, Economics and Econometrics Research Institute (EERI), Brussels.
    2. Hideki Toya & Mark Skidmore, 2010. "Natural Disaster Impacts and Fiscal Decentralization," CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 11(2), pages 43-55, July.
    3. Eiji Yamamura, 2015. "The Impact of Natural Disasters on Income Inequality: Analysis using Panel Data during the Period 1970 to 2004," International Economic Journal, Taylor & Francis Journals, vol. 29(3), pages 359-374, September.
    4. Lazzaroni, Sara & van Bergeijk, Peter A.G., 2014. "Natural disasters' impact, factors of resilience and development: A meta-analysis of the macroeconomic literature," Ecological Economics, Elsevier, vol. 107(C), pages 333-346.
    5. Yamamura, Eiji, 2012. "Death tolls from natural disasters: Influence of interactions between fiscal decentralization, institution, and economic development," MPRA Paper 36987, University Library of Munich, Germany.
    6. van Bergeijk, P.A.G. & Lazzaroni, S., 2013. "Macroeconomics of natural disasters," ISS Working Papers - General Series 50075, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.
    7. Samuel Fankhauser & Thomas K.J. McDermott, 2013. "Understanding the adaptation deficit: why are poor countries more vulnerable to climate events than rich countries?," GRI Working Papers 134, Grantham Research Institute on Climate Change and the Environment.
    8. Matthew A. COLE & Robert J R ELLIOTT & OKUBO Toshihiro & Eric STROBL, 2013. "Natural Disasters and Plant Survival: The impact of the Kobe earthquake," Discussion papers 13063, Research Institute of Economy, Trade and Industry (RIETI).
    9. Matthew A. COLE & Robert J R ELLIOTT & OKUBO Toshihiro & Eric STROBL, 2015. "Natural Disasters, Industrial Clusters and Manufacturing Plant Survival," Discussion papers 15008, Research Institute of Economy, Trade and Industry (RIETI).
    10. Jorge Martinez-Vazquez & Santiago Lago-Peñas & Agnese Sacchi, 2017. "The Impact Of Fiscal Decentralization: A Survey," Journal of Economic Surveys, Wiley Blackwell, vol. 31(4), pages 1095-1129, September.
    11. Hiroki Onuma & Kong Joo Shin & Shunsuke Managi, 2017. "Reduction of future disaster damages by learning from disaster experiences," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 87(3), pages 1435-1452, July.
    12. Qing Miao & Yu Shi & Meri Davlasheridze, 2021. "Fiscal Decentralization and Natural Disaster Mitigation: Evidence from the United States," Public Budgeting & Finance, Wiley Blackwell, vol. 41(1), pages 26-50, March.
    13. Lim, Jungmin & Loveridge, Scott & Shupp, Robert & Skidmore, Mark, 2017. "Double danger in the double wide: Dimensions of poverty, housing quality and tornado impacts," Regional Science and Urban Economics, Elsevier, vol. 65(C), pages 1-15.
    14. Yamamura, Eiji, 2013. "Impact of natural disasters on income inequality: Analysis using panel data during the period 1965 to 2004," MPRA Paper 45623, University Library of Munich, Germany.
    15. Subhani Keerthiratne & Richard S. J. Tol, 2017. "Impact of Natural Disasters on Financial Development," Economics of Disasters and Climate Change, Springer, vol. 1(1), pages 33-54, June.
    16. Yamamura, Eiji, 2011. "Effect of free media on views regarding the safety of nuclear energy after the 2011 disasters in Japan: evidence using cross-country data," MPRA Paper 32011, University Library of Munich, Germany.
    17. Emmanuel Apergis & Nicholas Apergis, 2021. "The impact of COVID-19 on economic growth: evidence from a Bayesian Panel Vector Autoregressive (BPVAR) model," Applied Economics, Taylor & Francis Journals, vol. 53(58), pages 6739-6751, December.
    18. Davlasheridze, Meri & Fisher-Vanden, Karen & Allen Klaiber, H., 2017. "The effects of adaptation measures on hurricane induced property losses: Which FEMA investments have the highest returns?," Journal of Environmental Economics and Management, Elsevier, vol. 81(C), pages 93-114.
    19. Narasingha Das & Partha Gangopadhyay, 2023. "Did weekly economic index and volatility index impact US food sales during the first year of the pandemic?," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 9(1), pages 1-23, December.
    20. Monica Escaleras & Charles Register, 2012. "Fiscal decentralization and natural hazard risks," Public Choice, Springer, vol. 151(1), pages 165-183, April.

    More about this item

    JEL classification:

    • H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:uwp:landec:v:89:y:2013:i:1:p:101-117. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: http://le.uwpress.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.