Findings show that the national government allocates more national aid and transfers during dry spells when damage is significantly higher and more prolonged than in periods of higher-than-usual precipitation. Yet, there is no significant link between national-to-local aid and local public finance and economic development to mitigate the adverse effects of extreme weather. The study uses local-level data on public income and expenditures, precipitation, poverty incidence, and satellite-based night-light luminosity.
- Introduction
- Review of Related Literature
- Empirical Strategy
- Results
- Conclusion