Household Finance after a Natural Disaster: The Case of Hurricane Katrina
Justin Gallagher and
Daniel Hartley ()
No 1406, Working Papers (Old Series) from Federal Reserve Bank of Cleveland
Little is known about how affected residents are able to cope with the fi nancial shock of a natural disaster. We investigate the impact that flooding from a major US hurricane had on household finance. Spikes in credit card borrowing and overall delinquency rates for the most flooded residents are modest in size and short-lived. Greater flooding results in larger reductions in total debt. Lower debt levels appear to be driven by homeowners using flood insurance to repay their mortgages rather than to rebuild. Debt reductions are larger in census tracts where mortgages were likely to be originated by nonlocal lenders.
Keywords: Insurance; Household Finance; Natural Disaster (search for similar items in EconPapers)
JEL-codes: G21 D14 H84 Q54 (search for similar items in EconPapers)
Pages: 53 pages
Date: 2014-08-12, Revised 2014-08-12
New Economics Papers: this item is included in nep-ias and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4) Track citations by RSS feed
There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.
Journal Article: Household Finance after a Natural Disaster: The Case of Hurricane Katrina (2017)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:fip:fedcwp:1406
Ordering information: This working paper can be ordered from
Access Statistics for this paper
More papers in Working Papers (Old Series) from Federal Reserve Bank of Cleveland Contact information at EDIRC.
Bibliographic data for series maintained by ().