Private Markets and Public Assistance for Natural Disaster Supplies

We document existing allocation mechanisms for natural disaster survival goods, such as flashlights, batteries, food, and water and show that Americans face widespread and frequent exposure to natural disasters, that disasters bring a substantial risk of power outages with a range of possible consequences, and that many households lack the necessary supplies on hand. Those who are unprepared are also especially likely to be low income and liquidity constrained. We show that federal aid provides substantial direct provision of key disaster supplies but that most immediate procurement occurs in the private retail market, suggesting a potential role for policy interventions.