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Natural disasters and relief assistance: Empirical evidence on the resilience of U.S. counties using dynamic propensity score matching

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  • Daniele Bondonio
  • Robert T. Greenbaum

Abstract

This paper utilizes a novel dynamic propensity score matching approach for multiple cohorts of U.S. counties between 1989 and 1999 to examine local economy resilience to rare natural disasters. Affected counties are sorted based on disaster intensity and are carefully matched to similar counties that did not experience a disaster. A difference‐in‐difference estimator compares trends of affected counties’ postdisaster business establishments, employment, and payroll to counterfactual trends in the matched counties. All affected counties experienced short‐run drops in economic activity that was particularly noticeable in higher‐intensity disasters. In the longer run, less distressed counties returned to their estimated counterfactual trends, but counties with lower predisaster socioeconomic conditions still lagged in growth, particularly in cases of lower‐intensity disasters. Policymakers can use this information to better prepare responses to future disasters.

Suggested Citation

  • Daniele Bondonio & Robert T. Greenbaum, 2018. "Natural disasters and relief assistance: Empirical evidence on the resilience of U.S. counties using dynamic propensity score matching," Journal of Regional Science, Wiley Blackwell, vol. 58(3), pages 659-680, June.
    • Handle: RePEc:bla:jregsc:v:58:y:2018:i:3:p:659-680
    DOI: 10.1111/jors.12379
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    Cited by:

    1. Sachiko Kazekami, 2022. "Regional differences in the epidemic shock on the local labor market and its spread," LABOUR, CEIS, vol. 36(1), pages 115-144, March.
    2. Alina Botezat & Mihaela David & Cristian Incaltarau & Peter Nijkamp, 2021. "The Illusion of Urbanization: Impact of Administrative Reform on Communities’ Resilience," International Regional Science Review, , vol. 44(1), pages 33-84, January.
    3. Cristina Vaquero-Piñeiro, 2020. "A voyage in the role of territory: are territories capable of instilling their peculiarities in local production systems," Departmental Working Papers of Economics - University 'Roma Tre' 0251, Department of Economics - University Roma Tre.
    4. Vaquero-Piñeiro, Cristina, 2021. "The long-term fortunes of territories as a route for agri-food policies: evidence from Geographical Indications," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 10(2), April.
    5. Giuliano Masiero & Michael Santarossa, 2020. "Earthquakes, grants, and public expenditure: How municipalities respond to natural disasters," Journal of Regional Science, Wiley Blackwell, vol. 60(3), pages 481-516, June.
    6. Andrea Rampa, 2020. "Climate change, catastrophes and Dismal Theorem: a critical review [Klimawandel, Katastrophen und das „Dismal Theorem“: eine kritische Überprüfung]," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 40(2), pages 113-136, October.
    7. Felix L. Friedt, 2021. "Natural disasters, aggregate trade resilience, and local disruptions: Evidence from Hurricane Katrina," Review of International Economics, Wiley Blackwell, vol. 29(5), pages 1081-1120, November.
    8. Maribel Jiménez Martínez & Mónica Jiménez Martínez & Rocío Romero-Jarén, 2020. "How resilient is the labour market against natural disaster? Evaluating the effects from the 2010 earthquake in Chile," 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(2), pages 1481-1533, November.

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