Extreme Weather Events and Local Fiscal Responses: Evidence from US Counties
This journal article examines the impacts of floods and hurricanes on U.S. county government finances.
This paper examines the impacts of floods and hurricanes on U.S. county government finances. Using a novel event study model that allows for heterogeneous treatment effects, we find that a flood or hurricane presidential disaster declaration (PDD) lowers tax revenue but increases government spending and intergovernmental revenues. Compared to flooding, hurricanes result in much larger repercussions on both revenues and borrowing. Our results also suggest disparate patterns of disaster-induced long-run fiscal impacts in counties with different socioeconomic conditions. Counties with lower incomes or greater social vulnerability tend to experience tax revenue losses and engage in more borrowing after a PDD, whereas higher-income counties see increased tax revenues and spending and also receive more intergovernmental transfers than their poorer counterparts.
Rochester Institute of Technology
Philippine Institute for Development Studies
Media Highlight — Jan 15, 2023
The Weather Channel: "Hurricane-Hit Florida Neighborhoods the Latest Site of Gentrification According to Study"
This video segment outlines the findings of a study coauthored by Fellow Yanjun (Penny) Liao about the gentrifying effects of hurricanes on Florida housing markets.
Media Highlight — Jan 10, 2023
E&E News: "Will Hurricanes Produce More Wealthy landowners in Florida?"
A recent journal article coauthored by Yanjun (Penny) Liao about the effect of hurricanes on Florida housing markets is profiled in this story.
Media Highlight — Jan 6, 2023
Public News Service: "Study: Gentrification and Increased Property Values Follow Hurricanes"
A widely syndicated print and radio piece discusses the findings of a new peer-reviewed study coauthored by RFF Fellow Yanjun (Penny) Liao.
Press Release — Jan 4, 2023
After Hurricanes, Florida Neighborhoods See Steady Housing Demand, Wealthier Residents
A new peer-reviewed study finds that, between 2000 and 2016, communities hit by hurricanes see no long-term change in housing demand—but that wealthier residents move in in the years immediately following a storm.