The impact of hurricanes on housing prices: evidence from U.S. coastal cities

Anthony Murphy (anthony.murphy@dal.frb.org) and Eric Strobl (eastrobl13@gmail.com)

No 1009, Working Papers from Federal Reserve Bank of Dallas

Abstract: We investigate the effect of hurricane strikes on housing prices in U.S. coastal cities. To this end, we construct a new index of hurricane destruction which varies over time and space. Using this index and an annual, two equation, dynamic equilibrium correction panel model with area and time fixed effects, we model the effects of hurricanes on real house process and real incomes. In our model hurricanes have a direct effect on house prices and an indirect effect via a fall in local incomes. Our results show that the typical hurricane strike raises real house prices for a number of years, with a maximum effect of between 3 % to 4 % three years after occurrence. There is also a small negative effect on real incomes. These results are stable across models and subsamples.

Keywords: Econometric models; Housing - Prices (search for similar items in EconPapers)
Date: 2010
New Economics Papers: this item is included in nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
https://www.dallasfed.org/~/media/documents/research/papers/2010/wp1009.pdf Full text (application/pdf)

Related works:
Working Paper: The Impact of Hurricanes on Housing Prices: Evidence from US Coastal Cities (2009)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fip:feddwp:1009

Ordering information: This working paper can be ordered from
pubsorder@dal.frb.org

Access Statistics for this paper

More papers in Working Papers from Federal Reserve Bank of Dallas Contact information at EDIRC.
Bibliographic data for series maintained by Amy Chapman (amy.chapman@dal.frb.org).