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Don't Blame the Weather: Federal Natural Disaster Aid and Public Corruption

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Abstract

Previous research using data on convictions for corruption-related crimes from the Public Integrity Section (PIN) of the Department of Justice points to a positive correlation between the amount of corruption in a state and the amount of federal funds provided to the state for natural disaster relief. We take a closer look at the relation between public corruption and disaster assistance using more detailed data on corruption convictions for an expanded time period. Our analysis provides little support for the hypothesis that the provision of federal disaster aid increases public corruption. It suggests instead that prior evidence of such a linkage arises from an unexplained correlation during the 1990's between disaster aid and convictions of postal employees for crimes such as stealing mail. Convictions for postal service crimes appear to account for a large fraction of the total federal convictions reported by PIN, which could have far reaching implications given that the PIN data have been used so extensively in the corruption literature.

Suggested Citation

  • Jeffrey Milyo & Adriana Cordis, 2013. "Don't Blame the Weather: Federal Natural Disaster Aid and Public Corruption," Working Papers 1321, Department of Economics, University of Missouri.
  • Handle: RePEc:umc:wpaper:1321
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    File URL: https://economics.missouri.edu/working-papers/2013/wp1321_milyo.pdf
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    References listed on IDEAS

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    1. Oguzhan Dincer & Christopher Ellis & Glen Waddell, 2010. "Corruption, decentralization and yardstick competition," Economics of Governance, Springer, vol. 11(3), pages 269-294, June.
    2. Peter T. Leeson & Russell S. Sobel, 2008. "Weathering Corruption," Journal of Law and Economics, University of Chicago Press, vol. 51(4), pages 667-681, November.
    3. Noel Johnson & Courtney LaFountain & Steven Yamarik, 2011. "Corruption is bad for growth (even in the United States)," Public Choice, Springer, vol. 147(3), pages 377-393, June.
    4. Rajeev Goel & Michael Nelson, 2011. "Measures of corruption and determinants of US corruption," Economics of Governance, Springer, vol. 12(2), pages 155-176, June.
    5. Goel, Rajeev K & Nelson, Michael A, 1998. "Corruption and Government Size: A Disaggregated Analysis," Public Choice, Springer, vol. 97(1-2), pages 107-120, October.
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    More about this item

    Keywords

    corruption; disaster assistance; FEMA;

    JEL classification:

    • H5 - Public Economics - - National Government Expenditures and Related Policies
    • D7 - Microeconomics - - Analysis of Collective Decision-Making

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