The Impact of Hurricanes on Housing Prices: Evidence from U.S. Coastal Cities

Murphy, Anthony; Strobl, Eric

doi:10.24149/wp1009

Cited by 18 publications

(19 citation statements)

References 33 publications

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“…Studies in this area typically use GDP or GDP equivalents as outcomes and thus miss disasters' impacts on government transfer payments. Consistent with my results, previous researchers have largely found very small or no long-run impacts on income in developed countries (e.g., Murphy andStrobl 2010, Strobl 2011).…”

supporting

confidence: 80%

The Fiscal Cost of Hurricanes: Disaster Aid versus Social Insurance

Deryugina

2017

American Economic Journal: Economic Policy

140

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supporting

confidence: 80%

The Fiscal Cost of Hurricanes: Disaster Aid versus Social Insurance

Deryugina

2017

American Economic Journal: Economic Policy

140

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“…The second strand of literature focuses on the economic impacts of natural disasters, typically considering a single outcome or single event (Leiter et al, 2009;Brown et al, 2006;Hsiang, 2010) or looking at effects from one to four quarters (Strobl and Walsh, 2009;Brown et al, 2006) or three to four years after the event (Murphy and Strobl, 2010;Belasen and Polachek, 2008;Strobl, 2011).…”

Section: Introductionmentioning

confidence: 99%

The Role of Transfer Payments in Mitigating Shocks: Evidence from the Impact of Hurricanes

Deryugina

2013

SSRN Journal

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Little is known about how aggregate economic shocks are mitigated by social safety nets.I use hurricanes as an exogenous shock to the economies of US counties and show that nondisaster government transfers, such as unemployment insurance and public medical spending, increase substantially in the decade after landfall. Indeed, I estimate that the net present value of the increase in non-disaster transfers is more than double that of direct disaster aid. Among the implications of these findings are that the fiscal costs of natural disasters are much larger than previously thought and that existing social safety net programs help to mitigate the effects of macroeconomic shocks.JEL codes: Q54, H84, H53.

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“…In a study that accounted for the size of the storm, as well as peak wind speed, Zhai and Jiang [57] found an exponent on wind speed of 5. In a US context, Murphy and Strobl [63] and Strobl [22] adopted values of 3 and 3.17. In a study of Latin American and the Caribbean, Strobl [20] estimated a value of 3.8, while for the Caribbean alone, Acevedo [33] found the power to be 3.…”

Section: Calculating Average Climate Damagementioning

confidence: 99%

Climate Impacts on Capital Accumulation in the Small Island State of Barbados

et al. 2019

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This paper constructs a model of climate-related damage for small island developing states (SIDS). We focus on the loss of private productive capital stocks through extreme climate events. In contrast to most economic analyses of climate impacts, which assume temperature-dependent damage functions, we draw on the engineering literature to allow for a greater or lesser degree of anticipation of climate change when designing capital stocks and balancing current adaptation expenditure against future loss and damage. We apply the model to tropical storm damage in the small island developing state of Barbados and show how anticipatory behavior changes the damage to infrastructure for the same degree of climate change. Thus, in the model, damage depends on behavior as well as climate variables.Sustainability 2019, 11, 3192 2 of 23 compute climate damage assume a "damage function" that depends on global mean temperature [13]. While most are aggregate, the FUND model takes a disaggregated approach, with separate damage functions for different kinds of climate impacts [14,15]. Each damage function depends on the global climate (either global temperature or greenhouse gas concentration) and the average income.This paper develops a sub-global simulation model that includes both climate damage and economic sub-models. It is applied to a national scale but could also be applied to a regional scale. The economic sub-model is structuralist [5,16,17], which makes it similar to the post-Keynesian model by Rezai et al. [10], but different from, for example, the DSGE model presented in [18] or the neoclassical FUND and DICE models. The goal for the climate damage sub-model is to represent the loss of productive capital through extreme climate events, whereby, "productive capital" represents the physical stocks used to produce goods and services for sale, as opposed to non-commercial capital, non-productive commercial capital (such as protective structures) and public infrastructure.We depart from both FUND and DICE by proposing a behaviorally-motivated model for climate damage, rather than a parameterized model. This is useful for simulation, because it allows for a richer set of alternative scenarios and policy options by targeting specific behavioral rules. In this paper, we focus on how anticipation of climate damage affects adaptation expenditure, but extensions of the model could introduce additional behaviors, such as different degrees of recovery after disaster. Furthermore, we differ from FUND and DICE by representing climate damage to capital stocks rather than as a loss in GDP. As noted by Piontek et al. [19], loss of inputs to production have different effects than loss of outputs. The inclusion of adaptive behaviors and the loss of physical capital also distinguishes the study from that of Moore et al. [6], who applied RICE, the regional version of the DICE model, to a study of climate impacts in the Caribbean. Moore et al. employed a general equilibrium analysis, which contrasts both with partial equilibrium analyses, ...

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The Impact of Hurricanes on Housing Prices: Evidence from U.S. Coastal Cities

Cited by 18 publications

References 33 publications

The Fiscal Cost of Hurricanes: Disaster Aid versus Social Insurance

The Fiscal Cost of Hurricanes: Disaster Aid versus Social Insurance

The Role of Transfer Payments in Mitigating Shocks: Evidence from the Impact of Hurricanes

Climate Impacts on Capital Accumulation in the Small Island State of Barbados

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