The National Bureau of Economic Research recently issued a Working Paper titled: “The Economic Impact of Hurricane Katrina on its Victims: Evidence from Individual Tax Returns” by Tatyana Deryugina, Laura Kawano, Steven Levitt. A key finding”:
“…at least in this particular disaster, aid to cover destroyed assets and short-run income declines was sufficient to make victims finally whole. Our results provide some optimism regarding the costs of climate-change drive dislocation, especially when adverse events can be anticipated well in advance.”
It was written up in the Washington Post, but I have to say this is not one of the Post’s best reporting jobs, since one cannot even find the full title and source of the paper. Their title is: Incomes actually went up after Hurricane Katrina. But economists don’t know why. Surprising new research shows that people living in New Orleans were financially better off after Katrina.
The full paper, 47 pages, is available from NBER for a modest fee. The Diva has a copy she can share upon request, for educational use.