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Economic diversification and the resiliency hypothesis: Evidence from the impact of natural disasters on regional housing values

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  • Coulson, N. Edward
  • McCoy, Shawn J.
  • McDonough, Ian K.

Abstract

We estimate the effect regional economic diversification has on the resiliency of the U.S. housing market, treating the spatial and temporal variation in natural disasters as exogenous shocks to regional economies. Our study demonstrates that diversity dampens both the magnitude and the duration of the effects of a disaster on local real estate values. Implications of our findings for the potential benefits of diversification in regional economies are discussed.

Suggested Citation

  • Coulson, N. Edward & McCoy, Shawn J. & McDonough, Ian K., 2020. "Economic diversification and the resiliency hypothesis: Evidence from the impact of natural disasters on regional housing values," Regional Science and Urban Economics, Elsevier, vol. 85(C).
    • Handle: RePEc:eee:regeco:v:85:y:2020:i:c:s0166046220302660
    DOI: 10.1016/j.regsciurbeco.2020.103581
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    Cited by:

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    2. Meltzer, Rachel & Ellen, Ingrid Gould & Li, Xiaodi, 2021. "Localized commercial effects from natural disasters: The case of Hurricane Sandy and New York City," Regional Science and Urban Economics, Elsevier, vol. 86(C).
    3. Raphaelle G. Coulombe & Akhil Rao, 2023. "Fires and Local Labor Markets," Papers 2308.02739, arXiv.org.
    4. Mark Partridge & Seung‐hun Chung & Sydney Schreiner Wertz, 2022. "Lessons from the 2020 Covid recession for understanding regional resilience," Journal of Regional Science, Wiley Blackwell, vol. 62(4), pages 1006-1031, September.
    5. Hasan Engin Duran & Ugo Fratesi, 2023. "Economic resilience and regionally differentiated cycles: Evidence from a turning point approach in Italy," Papers in Regional Science, Wiley Blackwell, vol. 102(2), pages 219-252, April.

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    More about this item

    Keywords

    Resiliency; Natural disasters; Housing prices;
    All these keywords.

    JEL classification:

    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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