Is the Supply of Charitable Donations Fixed? Evidence from Deadly Tornadoes

Do natural disasters increase charitable giving or simply reallocate a fixed supply of donations? We study this question using Internal Revenue Service data in the context deadly tornadoes. find that among zip codes located same state but more than 20 miles away from tornado’s path, donations by households about $2 million per tornado fatality. no negative effects fatalities on to charities these codes. The results imply response new needs need not come at expense other causes. (JEL D64, L31, Q54)