The impact of tropical storms on tax revenue

Preeya Mohan; Eric Strobl

doi:10.1002/jid.3538

The impact of tropical storms on tax revenue

Preeya Mohan, Eric Strobl^*

^*Corresponding author for this work

Economics

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

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Abstract

We investigate the vulnerability of tax revenue and its various sources to hurricane damages. To this end, we construct a monthly panel of hurricane losses, tax revenue, and its components, tax rates, and gross domestic product (GDP) for eight Eastern Caribbean countries over 14 years. Panel vector autoregressions (VAR) show that following a hurricane, any effects are generally short term. The cumulative expected loss in total tax revenue is 5.3%. Revenue derived from international trade and transactions and domestic goods and service are the most negatively affected. Countries with higher value added, as well as international trade and transactions tax rates, appear to be able to buffer the negative impact better, whereas higher property taxes amplify the negative impact of damaging hurricanes on this revenue source.

Original language	English
Pages (from-to)	472-489
Number of pages	18
Journal	Journal of International Development
Volume	33
Issue number	3
Early online date	19 Mar 2021
DOIs	https://doi.org/10.1002/jid.3538
Publication status	Published - Apr 2021

Bibliographical note

Publisher Copyright:
© 2021 John Wiley & Sons, Ltd.

Keywords

tax revenue
tropical storms

ASJC Scopus subject areas

Geography, Planning and Development
Development

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10.1002/jid.3538

MohanP2021impact
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Cite this

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The impact of tropical storms on tax revenue

Abstract

Bibliographical note

Keywords

ASJC Scopus subject areas

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