Informal and Formal Financial Resources and Small Business Resilience to Disasters

Tia Michelle McDonald, Raymond Florax and Maria I. Marshal

No 170332, 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota from Agricultural and Applied Economics Association

Abstract: The following article examines the impact of Hurricane Katrina on small business success and adaptation. Small business success is characterized as increased revenues when compared to pre-disaster levels. Adaptation is characterized as post-Katrina changes to business infrastructure. A multivariate probit with sample selection allows the empirical analysis to account for the simultaneity of changes in revenue and adaptation and also sample selection bias introduced through business demise. The results suggest the importance of pre-disaster mitigation and adaptation activities as well as the effectiveness of formal financial resources in supporting adaptation. Informal financial resources are found to be largely ineffective.

Keywords: Agribusiness; Environmental Economics and Policy; Risk and Uncertainty (search for similar items in EconPapers)
Pages: 40
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea14:170332

DOI: 10.22004/ag.econ.170332

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