Journal of Contemporary Eastern Asia

World Association for Triple Helix and Future Strategy Studies (세계트리플헬릭스미래전략학회)
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Effect of Natural Disasters on Local Economies: Forecasting Sales Tax Revenue after Hurricane Ike

  • Ismayilov, Orkhan (Department of Public Administration, University of North Texas) ;
  • Andrew, Simon A. (Department of Public Administration, University of North Texas)
  • Published : 2016.12.31
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Abstract

One of the main objectives of this paper is to provide insight to understand the effect of natural disasters on local government finance. That is, to analyze local governments' sales tax revenues after Hurricane Ike. Three Texas cities are examined: League City, Pearland, and Sugarland. Based on data collected from the Texas Comptroller's Office and the US Census, we found local governments experience a short-term increase in sales tax revenues and a long-term decline after the hurricane strike the region. On average, a major hurricane has a two-year impact on local government economy. The findings are essential for practitioners because in order to have a prosperous recovery after natural disasters, public managers have to prepare financially for short term changes in their sales tax revenues.

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