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The Political Economy of FEMA
Did Reorganization Matter?
Originally published in Journal of Public Finance and Public Choice
This paper investigates the political economy of FEMA after its post-9/11 merger with the Department of Homeland Security. The study finds that although politically-important states for the president continue to have a higher rate of disaster declaration, disaster expenditures are no longer higher in states with congressional representation on FEMA oversight committees.
This paper investigates the political economy of FEMA after its post-9/11 merger with the Department of Homeland Security. Using panel data for the post-DHS merger but pre-Katrina period, this study examines how FEMA’s much-debated reorganization has impacted the strong political influences on disaster declaration and relief spending that existed before FEMA’s reorganization. The study finds that although politically-important states for the president continue to have a higher rate of disaster declaration, disaster expenditures are no longer higher in states with congressional representation on FEMA oversight committees. These results suggest reorganization has reduced some of the political pressures within FEMA.
Read the article at Peter Leeson's website.
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