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Estimating the Economic Impact of Natural and Social Disasters, with an Application to Hurricane Katrina

Author

Listed:
  • Robert A. Baade

    (Department of Business and Economics, Lake Forest College, Lake Forest, IL 60045, USA, baade@lfc.edu)

  • Robert Baumann

    (Department of Economics, Box 192A, College of the Holy Cross, Worcester, MA 01610, USA, rbaumann@holycross.edu)

  • Victor Matheson

    (Department of Economics, Box 192A, College of the Holy Cross, Worcester, MA 01610, USA, vmatheso@holycross.edu)

Abstract

This paper examines taxable sales in the Los Angeles and Miami metropolitan areas to find evidence of the short- and long-run effects of the Rodney King riots and Hurricane Andrew on their respective economies. The comparison of these two events shows that the King riots had a long-term negative effect on Los Angeles' economy while Hurricane Andrew had a short-term positive effect on the Miami economy. The paper also applies the contrasting experiences of Los Angeles and Miami to New Orleans following Hurricane Katrina. In some ways, Katrina is a hybrid of these two events since it combines elements of both a natural disaster and a social disaster. The paper examines how Katrina is similar to each of the previous incidents and how these similarities might affect the recovery of New Orleans following the storm.

Suggested Citation

  • Robert A. Baade & Robert Baumann & Victor Matheson, 2007. "Estimating the Economic Impact of Natural and Social Disasters, with an Application to Hurricane Katrina," Urban Studies, Urban Studies Journal Limited, vol. 44(11), pages 2061-2076, October.
    • Handle: RePEc:sae:urbstu:v:44:y:2007:i:11:p:2061-2076
    DOI: 10.1080/00420980701518917
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    References listed on IDEAS

    as
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    More about this item

    JEL classification:

    • E65 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Studies of Particular Policy Episodes
    • H59 - Public Economics - - National Government Expenditures and Related Policies - - - Other
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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