@article {Atreya577, author = {Ajita Atreya and Susana Ferreira and Warren Kriesel}, title = {Forgetting the Flood? An Analysis of the Flood Risk Discount over Time}, volume = {89}, number = {4}, pages = {577--596}, year = {2013}, doi = {10.3368/le.89.4.577}, publisher = {University of Wisconsin Press}, abstract = {We examine whether property price differentials reflecting flood risk increase following a large flood event, and whether this change is temporary or permanent. We use single-family residential property sales in Dougherty County, Georgia, between 1985 and 2004 in a difference-in-differences spatial hedonic model framework. After the 1994 {\textquotedblleft}flood of the century,{\textquotedblright} prices of properties in the 100-year floodplain fell significantly. This effect was, however, short-lived. In spatial hedonic models that explicitly incorporate both linear and nonlinear temporal flood-zone effects, we show that the flood risk discount disappeared between four and nine years after the flood, depending upon the specification. (JEL Q51, Q54)}, issn = {0023-7639}, URL = {https://le.uwpress.org/content/89/4/577}, eprint = {https://le.uwpress.org/content/89/4/577.full.pdf}, journal = {Land Economics} }