PT  - JOURNAL ARTICLE
AU  - Atreya, Ajita
AU  - Ferreira, Susana
AU  - Kriesel, Warren
TI  - Forgetting the Flood? An Analysis of the Flood Risk Discount over Time
AID  - 10.3368/le.89.4.577
DP  - 2013 Nov 01
TA  - Land Economics
PG  - 577--596
VI  - 89
IP  - 4
4099  - http://le.uwpress.org/content/89/4/577.short
4100  - http://le.uwpress.org/content/89/4/577.full
SO  - Land Econ2013 Nov 01; 89
AB  - 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 “flood of the century,” 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)