The Economics of Disaster Relief

57 Pages Posted: 7 Jul 2015

See all articles by Giuseppe Dari‐Mattiacci

Giuseppe Dari‐Mattiacci

University of Amsterdam; Tinbergen Institute

Michael G. Faure

University of Maastricht - Faculty of Law, Metro; Erasmus University Rotterdam (EUR) - Erasmus School of Law

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Date Written: July 6, 2015

Abstract

We distinguish among three types of actions that can be taken to alleviate the consequences of natural disasters: precautionary efforts (made ex ante), relief efforts (made in the immediate aftermath of a disaster), and recovery efforts (made ex post). We argue that recognizing this distinction lessens many of the problems that the literature attributes to government intervention and hence expands the scope of government action following disasters. Relief is less likely than recovery to generate oversupply by the government and overreliance by victims.

Keywords: disaster, catastrophe, precaution, relief, recovery

JEL Classification: K00

Suggested Citation

Dari-Mattiacci, Giuseppe and Faure, Michael G., The Economics of Disaster Relief (July 6, 2015). Amsterdam Center for Law & Economics Working Paper No. 2015-01, Amsterdam Law School Research Paper No. 2015-25, Available at SSRN: https://ssrn.com/abstract=2627148 or http://dx.doi.org/10.2139/ssrn.2627148

Giuseppe Dari-Mattiacci (Contact Author)

University of Amsterdam ( email )

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Tinbergen Institute ( email )

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Michael G. Faure

University of Maastricht - Faculty of Law, Metro ( email )

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Erasmus University Rotterdam (EUR) - Erasmus School of Law ( email )

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Netherlands

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