Book reviews

TRANSFORMATION SCENE: THE CHANGING CULTURE OF A NEW GUINEA VILLAGE, by Ian Hobgin. The International Library of Sociology and Social Reconstruction, Routledge and Kegan Paul, London, 1951. xiv + 326 pp. with 2 maps and 22 plates. Price 30s.

AN INTRODUCTION TO WORLD POLITICS. By Professor W. Friedmann. 2nd ed. London, 1952 (Macmillan & Co. Ltd.), pp. xiv + 384. (Maps and tables).

THE SOCIAL SERVICES OF MODERN ENGLAND. By M. Penelope Hall. Routledge, 1952. Pp. viii 332. Price 25s.     

Earthquakes,grants, and public expenditure: How municipalities respond to natural disasters

We analyze the response of municipalities to the occurrence of natural disasters in terms of spending behavior, use of upper-tier transfers and recovery, using balance sheet data of about 8,000 Italian municipalities for the period 2000–2015, and the universe of earthquakes events. We find evidence of increasing expenditure for about 12 years after the shocks, with asymmetric responses between earthquake-related and unconditional grants, and heterogeneous flypaper effects across the country. While in northern municipalities expenditure tends to regress to pre-earthquake levels, southern municipalities stick to higher expenditure levels when grants drop. This evidence is coupled with a faster recovery of private income and housing prices in northern municipalities.     

Inter-Country Trade Patterns in Europe and the Asia-Pacific: Regional Structure and Extra-Regional Trends

This paper examines the regional structure and extraregional trends of Europe and the Asia-Pacific. The formation of the European Community and the latter's potential enlargement to Eastern Europe contrasts with the Asia-Pacific which has resisted economic and political integration and pursued economic linkages with countries outside of the region. The difference in regionalization tendencies have resulted in more geographically defined subregions in Europe, and greater territorial fragmentation in the Asia-Pacific. Even though European countries exhibit tighter interlinkages with one another, the evidence indicates that their extra-regional links compare favorably with the Asia-Pacific for much of the period from 1965 to 1994.