The impact and externalities of natural disasters on local tax revenue in Colombia

Jhorland Ayala García; Sandy Dall’erba; William C. Ridley

doi:10.1080/00343404.2022.2104830

The impact and externalities of natural disasters on local tax revenue in Colombia

Jhorland Ayala García, Sandy Dall’erba, William C. Ridley

Research output: Contribution to journal › Article › peer-review

Abstract

This paper studies the impact of natural disasters on tax revenue across Colombian municipalities. We follow a two-step approach to evaluate how a municipality’s tax revenue depends on natural disasters taking place both locally and in its trade partners. In the first step, we estimate a gravity model of bilateral trade and construct a matrix of estimated bilateral trade shares, allowing us to measure the strength of the economic relationships between municipalities. In the second step, our results reveal that natural disasters in the destination municipalities increase the tax revenue in the origin cities.

Original language	English (US)
Pages (from-to)	857-867
Number of pages	11
Journal	Regional Studies
Volume	57
Issue number	5
DOIs	https://doi.org/10.1080/00343404.2022.2104830
State	Published - 2023

Keywords

Colombia
gravity
municipalities
natural disasters
spatial externalities
tax revenue

ASJC Scopus subject areas

General Environmental Science
General Social Sciences

Online availability

10.1080/00343404.2022.2104830

Library availability

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title = "The impact and externalities of natural disasters on local tax revenue in Colombia",

abstract = "This paper studies the impact of natural disasters on tax revenue across Colombian municipalities. We follow a two-step approach to evaluate how a municipality{\textquoteright}s tax revenue depends on natural disasters taking place both locally and in its trade partners. In the first step, we estimate a gravity model of bilateral trade and construct a matrix of estimated bilateral trade shares, allowing us to measure the strength of the economic relationships between municipalities. In the second step, our results reveal that natural disasters in the destination municipalities increase the tax revenue in the origin cities.",

keywords = "Colombia, gravity, municipalities, natural disasters, spatial externalities, tax revenue",

author = "{Ayala Garc{\'i}a}, Jhorland and Sandy Dall{\textquoteright}erba and Ridley, {William C.}",

note = "Funding Information: We thank the editor and three anonymous reviewers for their constructive comments. The opinions contained in this paper are the sole responsibility of the authors and not the Banco de la Rep{\'u}blica or its board of directors. Publisher Copyright: {\textcopyright} 2022 Banco de la Rep{\'u}blica de Colombia. Published by Informa UK Limited, trading as Taylor & Francis Group.",

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AU - Ridley, William C.

N1 - Funding Information: We thank the editor and three anonymous reviewers for their constructive comments. The opinions contained in this paper are the sole responsibility of the authors and not the Banco de la República or its board of directors. Publisher Copyright: © 2022 Banco de la República de Colombia. Published by Informa UK Limited, trading as Taylor & Francis Group.

PY - 2023

Y1 - 2023

N2 - This paper studies the impact of natural disasters on tax revenue across Colombian municipalities. We follow a two-step approach to evaluate how a municipality’s tax revenue depends on natural disasters taking place both locally and in its trade partners. In the first step, we estimate a gravity model of bilateral trade and construct a matrix of estimated bilateral trade shares, allowing us to measure the strength of the economic relationships between municipalities. In the second step, our results reveal that natural disasters in the destination municipalities increase the tax revenue in the origin cities.

AB - This paper studies the impact of natural disasters on tax revenue across Colombian municipalities. We follow a two-step approach to evaluate how a municipality’s tax revenue depends on natural disasters taking place both locally and in its trade partners. In the first step, we estimate a gravity model of bilateral trade and construct a matrix of estimated bilateral trade shares, allowing us to measure the strength of the economic relationships between municipalities. In the second step, our results reveal that natural disasters in the destination municipalities increase the tax revenue in the origin cities.

KW - Colombia

KW - gravity

KW - municipalities

KW - natural disasters

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The impact and externalities of natural disasters on local tax revenue in Colombia

Abstract

Keywords

ASJC Scopus subject areas

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