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Fiscal policy response of local governments to floods in Italy

Author

Listed:
  • Chiara Lodi

    (Department of Economics, Society, Politics, University of Urbino Carlo Bo and SEEDS)

  • Giovanni Marin

    (Department of Economics, Society, Politics, University of Urbino Carlo Bo and SEEDS)

  • Marco Modica

    (Gran Sasso Science Institute)

Abstract

This paper aims at empirically testing the dynamics of budget outcomes of Italian municipalities in the aftermath of floods, by accounting for heterogeneous levels of resilience and vulnerability to natural disasters. Our findings, based on a dynamic difference-in-difference after propensity score matching, point to substantial impacts in terms of increased capital expenditure and revenues from transfer, which also depend on the degree of resilience and vulnerability. Through our analysis we account for multiple aspects of risk so we can support policy decisions related to both ex-ante and ex-post disaster occurrence management.

Suggested Citation

  • Chiara Lodi & Giovanni Marin & Marco Modica, 2022. "Fiscal policy response of local governments to floods in Italy," Working Papers 2022.34, Fondazione Eni Enrico Mattei.
    • Handle: RePEc:fem:femwpa:2022.34
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    References listed on IDEAS

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    More about this item

    Keywords

    Floods; Fiscal Policy of Local Governments; Resilience; Vulnerability;
    All these keywords.

    JEL classification:

    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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