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Spatial dependencies in wind-related housing damage

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  • Dakshina Silva
  • Jamie Kruse
  • Yongsheng Wang

Abstract

This article examines the spatial dependence among housing losses due to tornadoes using data from the May 1999 Oklahoma City tornado. In order to examine the existence of spatial dependence and its impacts on the damage analysis, we compare an estimation based on a traditional ordinary least square model with the general spatial model. The results show that housing damage in this disaster area is highly correlated. Monetary losses not only depend on the tornado that struck residences, but are related to the damage magnitudes of neighboring houses. Average losses as well as the loss ratio increase with the Fujita Scale damage rating. We conclude that the general spatial model provides unbiased estimates compared to the ordinary least square model. In order to construct appropriate home insurance policies for tornado disasters or to improve the damage resistance capabilities of houses, it is necessary for insurance underwriters and builders to consider spatial correlation of tornado damage. Copyright Springer Science+Business Media B.V. 2008

Suggested Citation

  • Dakshina Silva & Jamie Kruse & Yongsheng Wang, 2008. "Spatial dependencies in wind-related housing damage," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 47(3), pages 317-330, December.
    • Handle: RePEc:spr:nathaz:v:47:y:2008:i:3:p:317-330
    DOI: 10.1007/s11069-008-9221-y
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    References listed on IDEAS

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    1. Yasuo Kawawaki & Mitsuru Ota, 1996. "The Influence Of The Great Hanshin†Awaji Earthquake On The Local Housing Market," Review of Urban & Regional Development Studies, Wiley Blackwell, vol. 8(2), pages 220-233, July.
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    3. Kevin M. Simmons & Jamie Brown Kruse, 2000. "Market Value of Mitigation and Perceived Risk: Empirical Results," Journal of Economic Insight, Missouri Valley Economic Association, vol. 26(1), pages 41-51.
    4. Kevin M. Simmons & Jamie Brown Kruse & Douglas A. Smith, 2002. "Valuing Mitigation: Real Estate Market Response to Hurricane Loss Reduction Measures," Southern Economic Journal, John Wiley & Sons, vol. 68(3), pages 660-671, January.
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    Cited by:

    1. Ji-Myong Kim & Taehui Kim & Kiyoung Son & Sang-Guk Yum & Sungjin Ahn, 2019. "Measuring Vulnerability of Typhoon in Residential Facilities: Focusing on Typhoon Maemi in South Korea," Sustainability, MDPI, vol. 11(10), pages 1-11, May.
    2. Ji-Myong Kim & Kiyoung Son & Youngmi Yoo & Donghoon Lee & Dae Young Kim, 2018. "Identifying Risk Indicators of Building Damage Due to Typhoons: Focusing on Cases of South Korea," Sustainability, MDPI, vol. 10(11), pages 1-12, October.
    3. Murphy, Anthony & Strobl, Eric, 2009. "The Impact of Hurricanes on Housing Prices: Evidence from US Coastal Cities," MPRA Paper 19353, University Library of Munich, Germany.
    4. Ji-Myong Kim & Kiyoung Son & Young-Jae Kim, 2019. "Assessing regional typhoon risk of disaster management by clustering typhoon paths," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 21(5), pages 2083-2096, October.
    5. Sang-Guk Yum & Ji-Myong Kim & Kiyoung Son, 2020. "Natural Hazard Influence Model of Maintenance and Repair Cost for Sustainable Accommodation Facilities," Sustainability, MDPI, vol. 12(12), pages 1-11, June.
    6. Peng Qiao & Wei Chen & Jun Zhao & Jingyi Gao & Guofang Zhai, 2022. "Factors Associated with Housing Damage Caused by an EF4 Tornado in Rural Areas of Funing, China," IJERPH, MDPI, vol. 19(21), pages 1-16, October.

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