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Decentralization and Natural Disasters

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  • Timothy J. Goodspeed

Abstract

This paper surveys recent research on decentralization and natural disasters. The first part discusses results from theoretical models that have been used to study the issues that arise when natural disasters occur in a country with more than one level of government. The next section discusses the empirical results that have been found in the literature. A third section briefly touches upon practical problems that arise when decentralized governments are confronted with a natural disaster. The paper concludes by reflecting on what we know about whether policies to confront natural disasters should be centralized or decentralized.

Suggested Citation

  • Timothy J. Goodspeed, 2013. "Decentralization and Natural Disasters," CESifo Working Paper Series 4179, CESifo Group Munich.
  • Handle: RePEc:ces:ceswps:_4179
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    File URL: http://www.cesifo-group.de/DocDL/cesifo1_wp4179.pdf
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    References listed on IDEAS

    as
    1. Gilberto Turati & Luigi Buzzacchi, 2009. "Optimal risk allocation in the provision of local public services: can a private insurer be better than a public mutual fund?," Working Papers 2009/21, Institut d'Economia de Barcelona (IEB).
    2. Timothy Goodspeed & Andrew Haughwout, 2012. "On the optimal design of disaster insurance in a federation," Economics of Governance, Springer, vol. 13(1), pages 1-27, March.
    3. Kanbur, Ravi & Keen, Michael, 1993. "Jeux Sans Frontieres: Tax Competition and Tax Coordination When Countries Differ in Size," American Economic Review, American Economic Association, vol. 83(4), pages 877-892, September.
    4. Mark Skidmore & Hideki Toya, 2013. "Natural Disaster Impacts and Fiscal Decentralization," Land Economics, University of Wisconsin Press, vol. 89(1), pages 101-117.
    5. Tim Lohse & Julio R. Robledo, 2013. "Public Self-Insurance and the Samaritan’s Dilemma in a Federation," Public Finance Review, , vol. 41(1), pages 92-120, January.
    6. Ehrlich, Isaac & Becker, Gary S, 1972. "Market Insurance, Self-Insurance, and Self-Protection," Journal of Political Economy, University of Chicago Press, vol. 80(4), pages 623-648, July-Aug..
    7. repec:zbw:rwirep:0330 is not listed on IDEAS
    8. Kydland, Finn E & Prescott, Edward C, 1977. "Rules Rather Than Discretion: The Inconsistency of Optimal Plans," Journal of Political Economy, University of Chicago Press, vol. 85(3), pages 473-491, June.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    natural disasters; decentralization; risk-sharing; redistributive transfers; federalism; intergovernmental relations; grants;

    JEL classification:

    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • H79 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Other
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General

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