AbstractAlthough major disasters like the 2005 Gulf Coast hurricanes are infrequent, they dominate empirical loss distributions, as illustrated by a statistical analysis of flood losses in Louisiana. Extraordinary Federal emergency assistance has shifted a large portion of the burden of the 2005 floods to the rest of society, relieving financial stress in the disaster-stricken region but raising serious questions about the incentives for subnational governments to implement costly but efficient disaster avoidance policies in the future. The Federal government cannot credibly commit not to insure losses from future disasters, nor can it efficiently assume responsibility for land use, economic development, and other state and local government policies that affect disaster risk. Mandatory disaster reserves provide an alternative policy option through which actuarially fair Federal insurance could credibly strengthen the incentives for efficient subnational government disaster policies.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by in its journal Public Finance Review.
Volume (Year): 36 (2008)
Issue (Month): 4 (July)
Contact details of provider:
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Timothy Goodspeed & Andrew Haughwout, 2012.
"On the optimal design of disaster insurance in a federation,"
Economics of Governance,
Springer, vol. 13(1), pages 1-27, March.
- Timothy J. Goodspeed & Andrew Haughwout, 2006. "On the Optimal Design of Disaster Insurance in a Federation," Working Papers 2006-14, University of Kentucky, Institute for Federalism and Intergovernmental Relations.
- Timothy J. Goodspeed & Andrew Haughwout, 2007. "On the Optimal Design of Disaster Insurance in a Federation," CESifo Working Paper Series 1888, CESifo Group Munich.
- Timothy J. Goodspeed & Andrew Haughwout, 2011. "On the Optimal Design of Disaster Insurance in a Federation," Hunter College Department of Economics Working Papers 436, Hunter College: Department of Economics.
- Timothy J. Goodspeed & Andrew F. Haughwout, 2009. "On the optimal design of disaster insurance in a federation," Working Papers 2009/25, Institut d'Economia de Barcelona (IEB).
- Hideki Toya & Mark Skidmore, 2010.
"Natural Disaster Impacts and Fiscal Decentralization,"
Ifo Institute for Economic Research at the University of Munich, vol. 11(2), pages 43-55, 07.
- Mark Skidmore & Hideki Toya, 2013. "Natural Disaster Impacts and Fiscal Decentralization," Land Economics, University of Wisconsin Press, vol. 89(1), pages 101-117.
- 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, Social Science Research Center Berlin (WZB).
- Tim Lohse & Julio R. Robledo, 2012. "Public Self-Insurance and the Samaritan‘s Dilemma in a Federation," Ruhr Economic Papers 0330, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
- Gilberto Turati & Luigi Buzzacchi, 2009. "Optimal risk allocation in the provision of local public services: can a private insurer be better than a public mutual fund?," Working Papers 2009/21, Institut d'Economia de Barcelona (IEB).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (SAGE Publications).
If references are entirely missing, you can add them using this form.