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Dynamic and Spatial Impact of Hurricane Andrew on Florida'S Taxable Sales: An Intervention Analysis


  • David G. Lenze

    (University of Florida)


This paper shows how intervention analysis can be used to estimate the dynamic and spatial impact of recovery from a natural disaster. Specifically, it shows how to estimate three distinct phases of recovery: immediate impact, transitory recovery impact, and negative aftershock. It also discusses the estimation of a permanent impact. The method is then used to estimate the impact on Florida's taxable sales of the recovery from Hurricane Andrew. Estimates are provided of the immediate and total impact in five regions, and the length of the recovery is discussed. The results are compared to earlier impact studies of natural disasters on taxable sales. On the basis of studies of other hurricanes, it is found that the recovery from Hurricane Andrew has taken much longer than might be expected It is also found that, despite the magnitude of the insurance and transfer payments received by victims, the impact on taxable sales was within the normal variation of taxable sales at the state level, but significantly larger at the MSA level.

Suggested Citation

  • David G. Lenze, 1997. "Dynamic and Spatial Impact of Hurricane Andrew on Florida'S Taxable Sales: An Intervention Analysis," The Review of Regional Studies, Southern Regional Science Association, vol. 27(2), pages 163-183, Fall.
  • Handle: RePEc:rre:publsh:v:27:y:1997:i:2:p:163-183

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    References listed on IDEAS

    1. Paulo Guimaraes & Frank L. Hefner & Douglas P. Woodward, 1993. "Wealth And Income Effects Of Natural Disasters: An Econometric Analysis Of Hurricane Hugo," The Review of Regional Studies, Southern Regional Science Association, vol. 23(2), pages 97-114, Fall.
    2. Carol T. West & David G. Lenze, 1994. "Modeling the Regional Impact of Natural Disaster and Recovery: A General Framework and an Application to Hurricane Andrew," International Regional Science Review, , vol. 17(2), pages 121-150, August.
    3. Pagan, Adrian R & Wickens, M R, 1989. "A Survey of Some Recent Econometric Methods," Economic Journal, Royal Economic Society, vol. 99(398), pages 962-1025, December.
    4. Stanley Smith & Christopher McCarty, 1996. "Demographic effects of natural disasters: a case study of hurricane andrew," Demography, Springer;Population Association of America (PAA), vol. 33(2), pages 265-275, May.
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    Cited by:

    1. Meri Davlasheridze & Qin Fan, 2017. "Household Adjustments to Hurricane Katrina," The Review of Regional Studies, Southern Regional Science Association, vol. 47(1), pages 92-112, Winter.

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