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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

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    References listed on IDEAS

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    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. 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.
    3. 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.
    4. 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.
    5. 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.
    Full references (including those not matched with items on IDEAS)

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    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.

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    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

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