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Private Markets and Public Assistance for Natural Disaster Supplies

Author

Listed:
  • Michael Dinerstein
  • Nadia Lucas
  • Ishan Nath
  • Johanna Rayl

Abstract

We document existing allocation mechanisms for natural disaster survival goods, such as flashlights, batteries, food, and water and show that Americans face widespread and frequent exposure to natural disasters, that disasters bring a substantial risk of power outages with a range of possible consequences, and that many households lack the necessary supplies on hand. Those who are unprepared are also especially likely to be low income and liquidity constrained. We show that federal aid provides substantial direct provision of key disaster supplies but that most immediate procurement occurs in the private retail market, suggesting a potential role for policy interventions.

Suggested Citation

  • Michael Dinerstein & Nadia Lucas & Ishan Nath & Johanna Rayl, 2025. "Private Markets and Public Assistance for Natural Disaster Supplies," AEA Papers and Proceedings, American Economic Association, vol. 115, pages 385-390, May.
    • Handle: RePEc:aea:apandp:v:115:y:2025:p:385-90
    DOI: 10.1257/pandp.20251038
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    More about this item

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • G51 - Financial Economics - - Household Finance - - - Household Savings, Borrowing, Debt, and Wealth
    • H57 - Public Economics - - National Government Expenditures and Related Policies - - - Procurement
    • H76 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Other Expenditure Categories
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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