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Productive disasters? Evidence from European firm level data

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  • Andrea M. Leiter
  • Harald Oberhofer
  • Paul A. Raschky

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.

Suggested Citation

  • Andrea M. Leiter & Harald Oberhofer & Paul A. Raschky, "undated". "Productive disasters? Evidence from European firm level data," Working Papers 2007-25, Faculty of Economics and Statistics, Universität Innsbruck.
    • Handle: RePEc:inn:wpaper:2007-25
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    References listed on IDEAS

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    Cited by:

    1. Harald Oberhofer & Michael Pfaffermayr, "undated". "FDI versus Exports. Substitutes or Complements? A Three Nation Model and Empirical Evidence," Working Papers 2007-28, Faculty of Economics and Statistics, Universität Innsbruck.
    2. Jesús Crespo-Cuaresma & Andreas Breitenfellner, "undated". "Crude Oil Prices and the Euro-Dollar Exchange Rate: A Forecasting Exercise," Working Papers 2008-08, Faculty of Economics and Statistics, Universität Innsbruck.
    3. 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, Springer;European Association of Environmental and Resource Economists, vol. 42(2), pages 169-186, February.

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    More about this item

    Keywords

    Natural Disasters; Firm Growth; Gibrat's Law; Productivity; Difference-in-Differences;
    All these keywords.

    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 and their Management; Global Warming
    • 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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