Productive disasters? Evidence from European firm level data
Abstract
This paper examines the impact of floods on firms' capital accumulation, employment growth and productivity by using a difference-in-difference approach and considering firms' asset structure. We find evidence that companies in flooding regions show higher growth of total assets and employment than firms in areas which did not face a flooding. This positive effect is even more pronounced for companies with larger shares of intangible assets. Regarding the firms' productivity a significantly negative flood effect is observable which declines with increasing share of intangible assets.Download Info
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Paper provided by Faculty of Economics and Statistics, University of Innsbruck in its series Working Papers with number 2007-25.Length: 29
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Handle: RePEc:inn:wpaper:2007-25
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Web page: http://www.uibk.ac.at/fakultaeten/volkswirtschaft_und_statistik/index.html.en
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Related research
Keywords: Natural Disasters; Firm Growth; Gibrat's Law; Productivity; Difference-in-Differences;Find related papers by JEL classification:
- D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
- Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters
- R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General
- C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Harald Oberhofer & Michael Pfaffermayr, .
"FDI versus Exports. Substitutes or Complements? A Three Nation Model and Empirical Evidence,"
Working Papers
2007-28, Faculty of Economics and Statistics, University of Innsbruck.
- Harald Oberhofer & Michael Pfaffermayr, 2008. "FDI versus Exports Substitutes or Complements? A Three Nations Model and Empirical Evidence," FIW Working Paper series 012, FIW.
- Andrea Leiter & Gerald Pruckner, 2009.
"Proportionality of Willingness to Pay to Small Changes in Risk: The Impact of Attitudinal Factors in Scope Tests,"
Environmental & Resource Economics,
European Association of Environmental and Resource Economists, vol. 42(2), pages 169-186, February.
- Andrea M. Leiter & Gerald J. Pruckner, . "Proportionality of willingness to pay to small changes in risk - The impact of attitudinal factors in scope tests," Working Papers 2007-30, Faculty of Economics and Statistics, University of Innsbruck.
- Jesus Crespo Cuaresma & Andreas Breitenfellner, . "Crude Oil Prices and the Euro-Dollar Exchange Rate: A Forecasting Exercise," Working Papers 2008-08, Faculty of Economics and Statistics, University of Innsbruck.
- Tatyana Deryugina, 2011. "The Dynamic Effects of Hurricanes in the US: The Role of Non-Disaster Transfer Payments," Working Papers 1107, Massachusetts Institute of Technology, Center for Energy and Environmental Policy Research.
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