NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

The Economic Impact of Hurricane Katrina on its Victims: Evidence from Individual Tax Returns

Tatyana Deryugina, Laura Kawano, Steven Levitt

NBER Working Paper No. 20713
Issued in November 2014
NBER Program(s):EEE, PE

Hurricane Katrina destroyed more than 200,000 homes and led to massive economic and physical dislocation. Using a panel of tax return data, we provide one of the first comprehensive analyses of the hurricane’s long-term economic impact on its victims. Katrina had large and persistent impacts on where people live; small and mostly transitory impacts on wage income, employment, total income, and marriage; and no impact on divorce or fertility. Within just a few years, Katrina victims’ incomes fully recover and even surpass that of controls from similar cities that were unaffected by the storm. The strong economic performance of Katrina victims is particularly remarkable given that the hurricane struck with essentially no warning. Our results suggest that, at least in this particular disaster, aid to cover destroyed assets and short-run income declines was sufficient to make victims financially whole. Our results provide some optimism regarding the costs of climate-change driven dislocation, especially when adverse events can be anticipated well in advance.

download in pdf format
   (617 K)

email paper

Supplementary materials for this paper:

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w20713

Users who downloaded this paper also downloaded* these:
Chambers, Dimson, and Foo w20421 Keynes, King's and Endowment Asset Management
Hou, Xue, and Zhang w20682 A Comparison of New Factor Models
Diermeier, Hopp, and Iravani Innovating under Pressure - Towards a Science of Crisis Management
Stiglitz w20517 Reconstructing Macroeconomic Theory to Manage Economic Policy
Novy-Marx w20591 Understanding Defensive Equity
 
Publications
Activities
Meetings
NBER Videos
Themes
Data
People
About

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us