The effect of natural disasters on budget deficits in oecd countries: dynamic panel data analysis

This study aims to analyze empirically the impact of natural disasters on budget deficits. The study on 34 OECD countries covers the period 2000-2018. The results of the study obtained by employing two-stage system GMM analysis reveal public debt, foreign trade, GDP growth, and total loss costs of natural disasters affect the budget deficits statistically significantly and positively, while population density negatively affects the population density; however, there is no statistically significant relationship between inflation and budget deficits.