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Natural Disaster Impacts and Fiscal Decentralization

  • Hideki Toya
  • Mark Skidmore

In recent years, many developing countries have sought to implement more decentralized governmental systems. Despite efforts toward fiscal federalism, assessment of decentralization activity has been hampered by lack of consistent cross-country measures of effectiveness. Since governments play a central role in the management of catastrophic events, disaster impact data provide an opportunity to evaluate whether government structure is important in limiting disaster losses. We use cross-country data over the 1970–2005 period to estimate the relationship between decentralization and disaster casualties; countries with more decentralized governments experience fewer disaster-induced fatalities.

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Article provided by Ifo Institute for Economic Research at the University of Munich in its journal CESifo Forum.

Volume (Year): 11 (2010)
Issue (Month): 2 (07)
Pages: 43-55

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Handle: RePEc:ces:ifofor:v:11:y:2010:i:2:p:43-55
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