IDEAS home Printed from https://ideas.repec.org/p/ris/adbewp/0598.html
   My bibliography  Save this paper

National-to-Local Aid and Recovery from Extreme Weather Events: Evidence from the Philippines

Author

Listed:
  • Abrigo , Michael R.M.

    (Philippine Institute for Development Studies)

  • Brucal, Arlan

    (London School of Economics and Political Science)

Abstract

We examine the link between extreme weather events and national aid and transfers at the municipal level in the Philippines between 1992 and 2015. Using local-level data of public income and expenditures, local precipitation, poverty incidence, and satellite-based night light luminosity, we find that the national government seems to exhibit strategic behavior by allocating more national aid and transfers during dry spells, in which damage is significantly higher and more prolonged compared to periods of higher-than-usual precipitation. Notwithstanding, the amount of national aid and transfers in these events were very small at about $2 per capita per affected municipality, suggesting that the lack of effectiveness of aid and transfers could be the result of a lack of capacity rather than poor government allocation of public funds.

Suggested Citation

  • Abrigo , Michael R.M. & Brucal, Arlan, 2019. "National-to-Local Aid and Recovery from Extreme Weather Events: Evidence from the Philippines," ADB Economics Working Paper Series 598, Asian Development Bank.
    • Handle: RePEc:ris:adbewp:0598
    as

    Download full text from publisher

    File URL: https://www.adb.org/publications/national-local-aid-extreme-weather-philippines
    File Function: Full text
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Yang Dean, 2008. "Coping with Disaster: The Impact of Hurricanes on International Financial Flows, 1970-2002," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 8(1), pages 1-45, June.
    2. Matthew Ranson & Lisa Tarquinio & Audrey Lew, 2016. "Modeling the Impact of Climate Change on Extreme Weather Losses," NCEE Working Paper Series 201602, National Center for Environmental Economics, U.S. Environmental Protection Agency, revised May 2016.
    3. Marvin Phaup & Charlotte Kirschner, 2010. "Budgeting for disasters: Focusing on the good times," OECD Journal on Budgeting, OECD Publishing, vol. 10(1), pages 1-24.
    4. Villacin, Deanna T., 2017. "A Review of Philippine Government Disaster Financing for Recovery and Reconstruction," Discussion Papers DP 2017-21, Philippine Institute for Development Studies.
    5. Jianwen Wei & Yang Han, 2018. "Pre-Disaster Social Capital and Disaster Recovery in Wenchuan Earthquake-Stricken Rural Communities," Sustainability, MDPI, vol. 10(6), pages 1-16, June.
    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. Arlan Brucal & Viktor Roezer & Denyse S. Dookie & Rebecca Byrnes & Majah-Leah V. Ravago & Faye Cruz & Gemma Narisma, 2020. "Disaster impacts and financing: Local insights from the Philippines," Department of Economics, Ateneo de Manila University, Working Paper Series 202015, Department of Economics, Ateneo de Manila University.

    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. Christian Hubert Ebeke, 2011. "Does the dual-citizenship recognition determine the level and the utilization of international remittances? Cross-Country Evidence," CERDI Working papers halshs-00559528, HAL.
    2. Melissa Dell & Benjamin F. Jones & Benjamin A. Olken, 2014. "What Do We Learn from the Weather? The New Climate-Economy Literature," Journal of Economic Literature, American Economic Association, vol. 52(3), pages 740-798, September.
    3. Pablo Acosta & Cesar Calderón & Pablo Fajnzylber & Humberto López, 2006. "Remittances and Development in Latin America," The World Economy, Wiley Blackwell, vol. 29(7), pages 957-987, July.
    4. Sheng, Yu & Xu, Xinpeng, 2019. "The productivity impact of climate change: Evidence from Australia's Millennium drought," Economic Modelling, Elsevier, vol. 76(C), pages 182-191.
    5. Brian Walsh & Stéphane Hallegatte, 2020. "Measuring Natural Risks in the Philippines: Socioeconomic Resilience and Wellbeing Losses," Economics of Disasters and Climate Change, Springer, vol. 4(2), pages 249-293, July.
    6. Molina Millán, Teresa, 2015. "Regional Migration, Insurance and Economic Shocks: Evidence from Nicaragua," IZA Discussion Papers 9494, Institute of Labor Economics (IZA).
    7. Roy T. Meyers, 2017. "Is the U.S. Congress an Insurmountable Obstacle to Any “Far-Sighted Conception of Budgeting”?," Public Budgeting & Finance, Wiley Blackwell, vol. 37(4), pages 5-24, December.
    8. Thomas Joseph & Yaw Nyarko & Shing-Yi Wang, 2018. "Asymmetric Information and Remittances: Evidence from Matched Administrative Data," American Economic Journal: Applied Economics, American Economic Association, vol. 10(2), pages 58-100, April.
    9. Christian Hubert Ebeke, 2011. "Remittances, Countercyclicality, Openness and Government Size," Recherches économiques de Louvain, De Boeck Université, vol. 77(4), pages 89-114.
    10. David Antonio C., 2011. "How do International Financial Flows to Developing Countries Respond to Natural Disasters?," Global Economy Journal, De Gruyter, vol. 11(4), pages 1-38, December.
    11. Susana Ferreira, 2024. "Extreme Weather Events and Climate Change: Economic Impacts and Adaptation Policies," Annual Review of Resource Economics, Annual Reviews, vol. 16(1), pages 207-231, October.
    12. Felbermayr, Gabriel & Gröschl, Jasmin, 2013. "Natural disasters and the effect of trade on income: A new panel IV approach," European Economic Review, Elsevier, vol. 58(C), pages 18-30.
    13. Vo Hoang Ha & Takeshi Mizunoya & Nguyen Duc Kien & Truong Quang Dung & Le Thanh An & Nguyen Thai Phan & Nguyen Quang Tan & Pham Thi Trieu Tien & Nguyen Cong Dinh, 2022. "Post-flood recovery in the central coastal plain of Vietnam: determinants and policy implications," Asia-Pacific Journal of Regional Science, Springer, vol. 6(3), pages 899-929, October.
    14. Yoshito Takasaki, 2013. "Do natural disasters beget fraud victimization?: Unrealized coping through labor migration among the poor," Tsukuba Economics Working Papers 2013-002, Faculty of Humanities and Social Sciences, University of Tsukuba.
    15. Jean-Louis Combes & Rasmane Ouedraogo & Sampawende J.-A. Tapsoba, 2016. "Structural shifts in aid dependency and fiscal policy in developing countries," Applied Economics, Taylor & Francis Journals, vol. 48(46), pages 4426-4446, October.
    16. Harri Ramcharran, 2020. "Analyzing the impact of workers’ remittances on household consumption in Latin American and Caribbean Countries," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 44(1), pages 59-77, January.
    17. Oscar Becerra & Eduardo Cavallo & Ilan Noy, 2014. "Foreign Aid in the Aftermath of Large Natural Disasters," Review of Development Economics, Wiley Blackwell, vol. 18(3), pages 445-460, August.
    18. Imtiaz Bhatti & Marvin Phaup, 2015. "Budgeting for Fiscal Uncertainty and Bias: A Federal Process Proposal," Public Budgeting & Finance, Wiley Blackwell, vol. 35(2), pages 89-105, June.
    19. Strand, Jon, 2009. ""Revenue management"effects related to financial flows generated by climate policy," Policy Research Working Paper Series 5053, The World Bank.
    20. Eduardo Cavallo & Ilan Noy, 2009. "The Economics of Natural Disasters - A Survey," Working Papers 200919, University of Hawaii at Manoa, Department of Economics.

    More about this item

    Keywords

    aid and transfers; impact evaluation; natural disasters;
    All these keywords.

    JEL classification:

    • H84 - Public Economics - - Miscellaneous Issues - - - Disaster Aid
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:ris:adbewp:0598. 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: Orlee Velarde (email available below). General contact details of provider: https://edirc.repec.org/data/eradbph.html .

    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.