Weathering an Unexpected Financial Shock: The Role of Federal Disaster Assistance on Household Finance and Business Survival
研究龙卷风对家庭财务和企业生存的影响，发现联邦灾难援助（现金补助和基建拨款）能减少受灾者信用卡债务、降低违约率、促进消费，并提高企业存活率和就业人数。
First, we document the impact of being hit by a devastating tornado on household finance and business survival. The tornado paths are random and cannot be predicted using risk information. Individuals in severely damaged census blocks have a small reduction in debt and no change in bill delinquency. The business establishment survival rate declines by 9%. Second, we provide insight on the role of federal disaster assistance, which includes direct cash assistance to disaster victims and grants to repair public infrastructure, in mitigating the shock. Individuals in severely damaged blocks have 30% less credit card debt post-disaster when disaster aid is available. Migration from damaged blocks increases. Credit-constrained victims have lower bill delinquency and increase consumption. Disaster assistance is a place-based policy and results in 9% more establishments and 14% more employees post-disaster in the average-damage neighborhood. These effects are concentrated among small nonmanufacturing establishments that rely on local demand.