Public Sector Corruption and Natural Disasters: A Potentially Deadly Interaction
AbstractA number of recent studies have, separately, addressed the effects of public sector corruption and natural disasters. In this paper, we intersect these lines of research to assess whether corruption in the public sector plays a role in the havoc wrought by large scale natural disasters, using major earthquakes as the example. We first develop a brief theoretical model of the relation between these two variables and then empirically test the proposition by analyzing 344 major quakes occurring in 42 countries during the 1975 through 2003 period. We use a Negative Binomial estimation strategy that takes into account the endogenous nature of corruption and controls for a number of other factors such as earthquake frequency, magnitude, distance from population centers, and a country’s level of development which have been shown to influence a quake’s destructiveness. The results provide strong evidence that public sector corruption is both positively and significantly related to the death toll a given earthquake takes on a population.
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Bibliographic InfoPaper provided by Department of Economics, College of Business, Florida Atlantic University in its series Working Papers with number 06005.
Length: 42 pages
Date of creation: Apr 2006
Date of revision: Aug 2006
Earthquake fatalities; corruption; institutional variables;
Find related papers by JEL classification:
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
- H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
- P16 - Economic Systems - - Capitalist Systems - - - Political Economy of Capitalism
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-11-18 (All new papers)
- NEP-PBE-2006-11-18 (Public Economics)
- NEP-POL-2006-11-18 (Positive Political Economics)
- NEP-REG-2006-11-18 (Regulation)
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