Fiscal Responses after Catastrophes and the Enabling Role of Financial Development

Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F61989100%3A27510%2F15%3A86096343" target="_blank" >RIV/61989100:27510/15:86096343 - isvavai.cz</a>
Result on the web
<a href="http://dx.doi.org/10.1093/wber/lht041" target="_blank" >http://dx.doi.org/10.1093/wber/lht041</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.1093/wber/lht041" target="_blank" >10.1093/wber/lht041</a>

Result language
angličtina
Original language name
Fiscal Responses after Catastrophes and the Enabling Role of Financial Development
Original language description
Natural disasters may constitute a major shock to public finances and debt sustainability because of their impact on output and the need for government response with reconstruction and relief expenses. The question arises of whether governments can use financial development policy as the means to mitigate or insure against this negative fiscal impact. This paper uses a panel vector autoregressive model, estimated on annual data for high- and middle-income countries over 1975-2008, to study the role of debt market development and insurance penetration in enabling fiscal response after catastrophes. The authors find that countries with higher debt market development suffer smaller real consequences from disasters but that their deficits expand further following the mitigating fiscal response. Disasters in countries with high insurance penetration also experience smaller real consequences of disasters but without the need for further deficit expansions. From an ex-post perspective, the av
Czech name
—
Czech description
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Type
J<sub>x</sub> - Unclassified - Peer-reviewed scientific article (Jimp, Jsc and Jost)
CEP classification
AH - Economics
OECD FORD branch
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Project
<a href="/en/project/GA13-20613S" target="_blank" >GA13-20613S: Institutional Structures of Financial Services Supervision and Monitoring of Systemic Risk in Central Europe</a><br>
Continuities
P - Projekt vyzkumu a vyvoje financovany z verejnych zdroju (s odkazem do CEP)

Publication year
2015
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

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