Local Debt Financing in the Shadow of Storms: Disrupted and Destructed?

References

• Auh, J. K., Choi, J., Deryugina, T., & Park, T. (2022). Natural disasters and municipal bonds. National Bureau of Economic Research.
   Google Scholar
• Baade, R. A., Baumann, R., & Matheson, V. (2007). Estimating the economic impact of natural and social disasters, with an application to Hurricane Katrina. Urban Studies, 44(11), 2061–2076. https://doi.org/10.1080/00420980701518917
   Web of Science ®Google Scholar
• Benson, C., & Clay, E. J. (2004). Understanding the economic and financial impacts of natural disasters. World Bank Publications.
   Google Scholar
• Borensztein, E., Cavallo, E., & Valenzuela, P. (2009). Debt sustainability under catastrophic risk: The case for government budget insurance. Risk Management and Insurance Review, 12(2), 273–294.
   Google Scholar
• Boustan, L. P., Kahn, M. E., Rhode, P. W., & Yanguas, M. L. (2020). The effect of natural disasters on economic activity in US counties: A century of data. Journal of Urban Economics, 118, 103–257.
   Web of Science ®Google Scholar
• Boyne, G. A., & Meier, K. J. (2009). Environmental turbulence, organizational stability, and public service performance. Administration & Society, 40(8), 799–824.
   Web of Science ®Google Scholar
• Brown, J. T., Lindsay, B. R., & Petruzzelli, J. (2017). Congressional primer on responding to major disasters and emergencies. Congressional Research Service.
   Google Scholar
• Capeci, J. (1991). Credit risk, credit ratings, and municipal bond yields: A panel study. National Tax Journal, 44(4), 41–56.
   Web of Science ®Google Scholar
• Capeci, J. (1994). Local fiscal policies, default risk, and municipal borrowing costs. Journal of Public Economics, 53(1), 73–89.
   Web of Science ®Google Scholar
• Carter, B., Danford, A., Howcroft, D., Richardson, H., Smith, A., & Taylor, P. (2011). Lean and mean in the civil service: the case of processing in HMRC. Public Money & Management, 31(2), 115–122.
   Web of Science ®Google Scholar
• Chen, G. (2020). Assessing the financial impact of natural disasters on local governments. Public Budgeting & Finance, 40(1), 22–44.
   Web of Science ®Google Scholar
• Clingermayer, J. C., & Wood, B. D. (1995). Disentangling patterns of state debt financing. American Political Science Review, 89(1), 108–120.
   Web of Science ®Google Scholar
• Crespo Cuaresma, J., Hlouskova, J., & Obersteiner, M. (2008). Natural disasters as creative destruction? Evidence from developing countries. Economic Inquiry, 46(2), 214–226.
   Web of Science ®Google Scholar
• Denison, D. V. (2001). Bond insurance utilization and yield spreads in the municipal bond market. Public Finance Review, 29(5), 394–411.
   Web of Science ®Google Scholar
• Deryugina, T. (2017). The fiscal cost of hurricanes: Disaster aid versus social insurance. American Economic Journal: Economic Policy, 9(3), 168–198.
   Web of Science ®Google Scholar
• Fairchild, L. M., & Koch, T. W. (1998). The impact of state disclosure requirements on municipal yields. National Tax Journal, 51(4), 733–753.
   Web of Science ®Google Scholar
• Fowles, J., Liu, G., & Mamaril, C. B. (2009). Accounting for natural disasters: The impact of earthquake risk on California municipal bond pricing. Public Budgeting & Finance, 29(1), 68–83.
   Google Scholar
• Gao, P., Lee, C., & Murphy, D. (2019). Municipal borrowing costs and state policies for distressed municipalities. Journal of Financial Economics, 132(2), 404–426.
   Web of Science ®Google Scholar
• Goldsmith-Pinkham, P., Gustafson, M. T., Lewis, R. C., & Schwert, M. (2019). Sea level rise and municipal bond yields. Rodney L White Center for Financial Research.
   Google Scholar
• Heckman, J. J. (1979). Sample selection bias as a specification error. Econometrica: Journal of the Econometric Society, 47(1), 153–161.
   Web of Science ®Google Scholar
• Hildreth, W. B. (1993). State and local governments as borrowers: Strategic choices and the capital market. Public Administration Review, 53(1), 41–49.
   Web of Science ®Google Scholar
• Hildreth, W. B. (2009). The financial logistics of disaster: The case of Hurricane Katrina. Public Performance & Management Review, 32(3), 400–436.
   Google Scholar
• Hong, H., Li, F. W., & Xu, J. (2019). Climate risks and market efficiency. Journal of Econometrics, 208(1), 265–281.
   Web of Science ®Google Scholar
• Jerch, R., Kahn, M. E., & Lin, G. C. (2020). Local public finance dynamics and hurricane shocks. National Bureau of Economic Research Working Paper Series No. 28050.
   Google Scholar
• Jerch, R. L. (2018). The local consequences of federal mandates: Evidence from the clean water act. Working paper, Johns Hopkins University.
   Google Scholar
• Johnson, C. L., & Kriz, K. A. (2005). Fiscal institutions, credit ratings, and borrowing costs. Public Budgeting & Finance, 25(1), 84–103.
   Google Scholar
• Kocornik-Mina, A., McDermott, T. K., Michaels, G., & Rauch, F. (2020). Flooded cities. American Economic Journal: Applied Economics, 12(2), 35–66.
   Web of Science ®Google Scholar
• Kousky, C. (2014). Informing climate adaptation: A review of the economic costs of natural disasters. Energy Economics, 46, 576–592.
   Web of Science ®Google Scholar
• Kriz, K. A. (2003). Comparative costs of negotiated versus competitive bond sales: new evidence from state general obligation bonds. The Quarterly Review of Economics and Finance, 43(2), 191–211. 10.1016/S1062-9769(01)00124-7
   Google Scholar
• Liao, Y., & Kousky, C. (2021). The fiscal impacts of wildfires on California municipalities. Available at SSRN 3612311.
   Google Scholar
• Lindsay, B. R., & Murray, J. (2014). Supplemental appropriations for disaster assistance: Summary data and analysis. Congressional Research Service.
   Google Scholar
• Lis, E. M., & Nickel, C. (2010). The impact of extreme weather events on budget balances. International Tax and Public Finance, 17(4), 378–399.
   Web of Science ®Google Scholar
• Maher, C. S., & Deller, S. C. (2007). Municipal responses to fiscal stress. Intl Journal of Public Administration, 30(12–14), 1549–1572.
   Google Scholar
• Meier, K. J., & O’Toole, L. J. Jr. (2008). Management theory and Occam’s razor: How public organizations buffer the environment. Administration & Society, 39(8), 931–958.
   Web of Science ®Google Scholar
• Meier, K. J., O’Toole, L. J., Jr., & Hicklin, A. (2010). I’ve seen fire and I’ve seen rain: Public management and performance after a natural disaster. Administration & Society, 41(8), 979–1003.
   Web of Science ®Google Scholar
• Melecky, M., & Raddatz, C. (2015). Fiscal responses after catastrophes and the enabling role of financial development. The World Bank Economic Review, 29(1), 129–149.
   Web of Science ®Google Scholar
• Miao, Q., Hou, Y., & Abrigo, M. (2018). Measuring the financial shocks of natural disasters: A panel study of US States. National Tax Journal, 71(1), 11–44.
   Web of Science ®Google Scholar
• Miao, Q. (2018). Fiscal implications of managing natural disasters for national and subnational governments. In Oxford research encyclopedia of natural hazard science. Oxford University Press.
   Google Scholar
• Miao, Q., Chen, C., Lu, Y., & Abrigo, M. (2020). Natural disasters and financial implications for subnational governments: Evidence from China. Public Finance Review, 48(1), 72–101.
   Web of Science ®Google Scholar
• Moldogaziev, T. T., Greer, R. A., & Lee, J. (2019). Private Placements and the Cost of Borrowing in the Municipal Debt Market. Public Budgeting & Finance, 39(3), 44–74. 10.1111/pbaf.12235
   Web of Science ®Google Scholar
• Moody’s. (2016). How Moody’s assesses the physical effects of climate change on sovereign Issuers. https://www.eticanews.it/wp-content/uploads/2017/01/Moodys-climate-change-and-sovereigns-November-7.pdf.
   Google Scholar
• Moody’s. (2017a). Evaluating the impact of climate change on U.S. state and local issuers. http://southeastfloridaclimatecompact.org/wp-content/uploads/2017/12/Evaluating-the-impact-of-climate-change-on-US-state-and-local-issuers-11-28-17.pdf.
   Google Scholar
• Moody’s. (2017b). Moody’s warns cities to address climate risks or face downgrades. Bloomberg.
   Google Scholar
• National Association of Counties. (2019). County matters. https://www.naco.org/resources/featured/counties-matter#go.
   Google Scholar
• Noy, I., & Nualsri, A. (2011). Fiscal storms: Public spending and revenues in the aftermath of natural disasters. Environment and Development Economics, 16(1), 113–128.
   Google Scholar
• O’Toole, L. J., Jr., & Meier, K. J. (1999). Modeling the impact of public management: Implications of structural context. Journal of Public Administration Research and Theory, 9(4), 505–526.
   Google Scholar
• O’Toole, L. J., Jr., & Meier, K. J. (2010). In defense of bureaucracy: Public managerial capacity, slack and the dampening of environmental shocks. Public Management Review, 12(3), 341–361.
   Web of Science ®Google Scholar
• Office of Management and Budget. (2016). Climate change: The fiscal risks facing the federal government. OMB.
   Google Scholar
• Olshansky, R. B., & Johnson, L. A. (2014). The evolution of the federal role in supporting community recovery after US disasters. Journal of the American Planning Association, 80(4), 293–304.
   Web of Science ®Google Scholar
• Ouattara, B., & Strobl, E. (2013). The fiscal implications of hurricane strikes in the Caribbean. Ecological Economics, 85, 105–115.
   Web of Science ®Google Scholar
• Painter, M. (2020). An inconvenient cost: The effects of climate change on municipal bonds. Journal of Financial Economics, 135(2), 468–482.
   Web of Science ®Google Scholar
• Poterba, J. M. (1995). Capital budgets, borrowing rules, and state capital spending. Journal of Public Economics, 56(2), 165–187.
   Web of Science ®Google Scholar
• Robbins, M. D., & Simonsen, B. (2012). Do Debt Levels Influence State Borrowing Costs?. Public Administration Review, 72(4), 498–505. 10.1111/j.1540-6210.2011.02548.x
   Web of Science ®Google Scholar
• Skidmore, M., & Toya, H. (2002). Do natural disasters promote long‐run growth? Economic Inquiry, 40(4), 664–687.
   Web of Science ®Google Scholar
• Standard and Poor’s. (2015). Storm alert: Natural disasters can damage sovereign creditworthiness. https://unepfi.org/pdc/wp-content/uploads/StormAlert.pdf.
   Google Scholar
• Strobl, E. (2011). The economic growth impact of hurricanes: Evidence from US coastal counties. Review of Economics and Statistics, 93(2), 575–589.
   Web of Science ®Google Scholar
• U.S. GAO. (2015). Budgeting for disasters: Approaches to budgeting for disasters in selected states. https://www.gao.gov/products/GAO-15-424.
   Google Scholar
• Wildasin, D. E. (2008). Disaster policies: Some implications for public finance in the US federation. Public Finance Review, 36(4), 497–518.
   Google Scholar
• Yan, W. (2013). Using trend data to evaluate the differential response of state borrowing to revenue volatility. Public Budgeting & Finance, 33(2), 75–92. 10.1111/j.1540-5850.2013.12009.x
   Google Scholar