Nejat Anbarci () (Department of Economics, Florida International University) Monica Escaleras (Department of Economics and Finance, College of Charleston) Charles A. Register () (Department of Economics, Florida Atlantic University)
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In our theoretical model, we show that as per capita income decreases and the level of inequality increases, different segments of society are less likely to agree on the distribution of the burden of the necessary collective action, causing the relatively-wealthy simply to self-insure against the disaster while leaving the relatively-poor to its mercy. We then evaluate 269 large earthquakes occurring worldwide (1960-2002), taking into account other factors such as an earthquake's magnitude, depth and proximity to population centers. Using a Negative Binomial estimation strategy with both random and fixed estimators, we find strong evidence of the theoretical model’s predictions.
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Paper provided by Florida International University, Department of Economics in its series Working Papers with number
0415.
Length: 41 pages Date of creation: Jun 2004 Date of revision: Publication status: Forthcoming in Journal of Public Economics Handle: RePEc:fiu:wpaper:0415
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
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References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
Benabou, R., 1996.
"Inequality and Growth,"
Working Papers
96-22, C.V. Starr Center for Applied Economics, New York University.
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