EconPapers    
Economics at your fingertips  
 

The Impact of Hurricanes on Housing Prices: Evidence from US Coastal Cities

Anthony Murphy () and Eric Strobl ()

MPRA Paper from University Library of Munich, Germany

Abstract: We investigate the effect of hurricane strikes on housing prices in US 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 sub-samples.

Keywords: hurricanes; house prices; US coastal cities (search for similar items in EconPapers)
JEL-codes: Q54 R21 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ure
Date: 2009-12-15
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/19353/3/MPRA_paper_19353.pdf original version (application/pdf)
https://mpra.ub.uni-muenchen.de/19360/3/MPRA_paper_19360.pdf revised version (application/pdf)

Related works:
Working Paper: The impact of hurricanes on housing prices: evidence from U.S. coastal cities (2010) Downloads
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:pra:mprapa:19353

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().

 
Page updated 2019-08-20
Handle: RePEc:pra:mprapa:19353