The Division of Politics and Economics invites the CGU community to attend this week’s Tuesday Lunch Talk featuring Shawn Rohlin, PhD, associate professor of Economics at Kent State University. Lunch will be provided.
Shawn Rohlin is the Director of the Center for Entrepreneurship and Business Innovation at Kent State University and an Associate Professor of Economics at Kent State University. He is currently an associate editor at Journal of Regional Science as well as Economic Development Quarterly. His fields of research are in Urban and Regional Economics, Entrepreneurship, and Public Finance. His business research primarily focuses on the determinants of businesses such as agglomeration, displacement, and effects of government policies. He has studied the effects of location-based tax incentives, taxation, bankruptcy law and the minimum wage.
Talk Title: Weathering an Unexpected Financial Shock: The Role of Cash Grants on Household Finance and Business Survival following a Natural Disaster
Rohlin estimates the causal effect of cash grants on household finance and business survival following a natural disaster. Rohlin finds that disaster-affected individuals in high damage block with access to cash grants have 17% less credit card debt following the disaster than those without access to cash grants. Grants do not reduce negative financial outcomes, but do decrease migration. The grants play a role in mitigating the effects of the shock to business; resulting in 18% more establishments and 29% more employees post-disaster in disaster-affected neighborhoods where residents receive grants. These effects are concentrated among small non-manufacturing establishments that rely on local demand.