Institutional Affiliation: UCLA
|The Effect of Natural Disasters on Economic Activity in US Counties: A Century of Data|
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More than 100 natural disasters strike the United States every year, causing extensive fatalities and damages. We construct the universe of US federally designated natural disasters from 1920 to 2010. We find that severe disasters increase out-migration rates at the county level by 1.5 percentage points and lower housing prices/rents by 2.5–5.0 percent. The migration response to milder disasters is smaller but has been increasing over time. The economic response to disasters is most consistent with falling local productivity and labor demand. Disasters that convey more information about future disaster risk increase the pace of out-migration.
Published: Leah Platt Boustan & Matthew E. Kahn & Paul W. Rhode & Maria Lucia Yanguas, 2020. "The Effect of Natural Disasters on Economic Activity in US Counties: A Century of Data," Journal of Urban Economics, .
|The Political Coase Theorem: Experimental Evidence|
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The Political Coase Theorem (PCT) states that, in the absence of transaction costs, agents should agree to implement efficient policies regardless of the distribution of bargaining power among them. This paper uses a laboratory experiment to explore how commitment problems undermine the validity of the PCT. Overall, the results support theoretical predictions. In particular, commitment issues matter, and the existence of more commitment possibilities leads to better social outcomes. Moreover, we find that the link is valid when commitment possibilities are asymmetrically distributed between players and even when a redistribution of political power is required to take advantage of those possibilities. However, we also find that at low levels of commitment there is more cooperation than stri...
Published: Galiani, Sebastian & Torrens, Gustavo & Yanguas, Maria Lucia, 2014. "The Political Coase Theorem: Experimental evidence," Journal of Economic Behavior & Organization, Elsevier, vol. 103(C), pages 17-38. citation courtesy of