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| Mitchell R. Livy |
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| ''Catastrophe capitalization: Estimating the capitalization of extreme natural events across type and reoccurrence'' |
| ( 2020, Vol. 40 No.1 ) |
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| Extreme natural events are associated with significant economic losses and expected to increase in frequency and intensity with time. While previous research has primarily investigated singular event types, the relative impact of multiple types of reoccurring events on the housing market has not been extensively studied. Filling this void in the literature, I estimate the housing price capitalization of numerous fire and flooding incidents in Southern California between 2000 and 2015. The results provide evidence that capitalization of extreme natural events is heterogeneous across type, time, and reoccurrence, and these variables are important when considering related policies involving outreach and education. |
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| Keywords: Housing prices, Nonmarket valuation, Extreme natural events |
JEL: Q5 - Environmental Economics: General
R2 - Urban, Rural, and Regional Economics: Household Analysis: General |
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| Manuscript Received : Oct 24 2018 | | Manuscript Accepted : Feb 29 2020 |
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