Joint Macro Research Seminar - Fabio Canova (Stockholm School of Economics)

Costly disasters and the role of fiscal policy

Abstract

We examine the dynamic effects of natural disasters in US states and relate them to state and federal fiscal policy actions. Typically, disasters have important negative output but less severe unemployment consequences. Real effects vary spatially: coastal and poor states recover more slowly. Countercyclical fiscal policy reduces the severity of the real downfall. States with less stringent budgetary requirements and/or budget stabilization funds face smaller real costs. State spending is more effective than federal spending in reducing the negative effects of the disaster shock at the cost of mild and temporary increases in state debt

Please reply by email to nbbmacro.seminar@nbb.be if you wish to participate to this seminar and/or if you want to have an appointment with the speaker. Please indicate if you will be physically present or if you will follow the seminar online

Peter Claeys (VUB), Pierrick Clerc (ULiège), Ferre De Graeve (KU Leuven), Romain Houssa (UNamur), Robert Kollmann (ULB), Yasin Kursat Önder (UGent), Luca Pensieroso (UCLouvain), Roland Winkler (UAntwerpen) and Raf Wouters (NBB)

Contact : Romain Houssa - romain.houssa@unamur.be
Télecharger : vCal