Could bad weather be responsible for U.S. corruption? Natural disasters create resource windfalls in the states they strike by triggering federally-provided natural disaster relief. By increasing the benefit of fraudulent appropriation and creating new opportunities for such theft, disaster...

Could bad weather be responsible for U.S. corruption? Natural disasters create resource windfalls in the states they strike by triggering federally-provided natural disaster relief. Like windfalls created by the natural resource curse and foreign aid, disaster relief windfalls may also increase...

This Policy Comment examines the effect that federal government disaster relief payments have on local corruption. Using econometric analysis Leeson and Sobel explain how federal disaster aid acts as a resource windfall and why states that have more natural disasters see higher levels of public...