How does a change in risk perception affect the housing market ? Evidence from an industrial accident in France
ERSA conference papers from European Regional Science Association
In 2001, the AZF plant exploded in Toulouse (France). The accident was unexpected, it strongly damaged local housing and benefited from a wide media coverage. It provides a rare opportunity to analyze the consequences of a shift in risk perception on housing markets and neighborhoods subject to industrial risk. Using a difference-in-difference matching strategy, this paper shows that although transaction prices do not change as a result of this shift, local housing markets are indeed affected. In particular, the vacancy rate increases, and the standard of living in the at-risk areas tends to deteriorate.
JEL-codes: R20 R21 R23 C21 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:wiw:wiwrsa:ersa14p1410
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