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The Unintended Consequences of Post-Disaster Policies for Spatial Sorting

Author

Listed:
  • Eunjee Kwon
  • Marcel Henkel
  • Pierre Magontier

Abstract

We document that U.S. hurricanes striking close to Election Day trigger larger public spending responses and sustained population inflows than comparable hurricanes occurring between elections. Exploiting quasi-random variation in hurricane timing, we show that electoral incentives shape post- disaster policy with lasting spatial consequences. A quantitative spatial equilibrium model implies that eliminating these electoral timing distortions would raise aggregate welfare by 0.025%, but the aggregate gain masks an 18:1 asymmetry in per-capita stakes between losers and gainers. This distributional asymmetry rationalizes the persistence of these electoral distortions.

Suggested Citation

  • Eunjee Kwon & Marcel Henkel & Pierre Magontier, 2026. "The Unintended Consequences of Post-Disaster Policies for Spatial Sorting," Working Papers 1566, Barcelona School of Economics.
  • Handle: RePEc:bge:wpaper:1566
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    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • H84 - Public Economics - - Miscellaneous Issues - - - Disaster Aid

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