Husby, T., de Groot, H.L.F., Hofkes, M. and Dröes, M. (2014). Do floods have permanent effects? Evidence from the Netherlands Journal of Regional Science, 54(3):355--377.
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Affiliated authors
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Publication year2014
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JournalJournal of Regional Science
This study investigates the short- and long-run impact on population dynamics of the major flood in the Netherlands in 1953. A dynamic difference-in-differences analysis reveals that the flood had an immediate negative impact on population growth, but limited long-term effects. In contrast, the resulting flood protection program (Deltaworks), had a persisting positive effect on population growth. As a result, there has been an increase in population in flood-prone areas. Our results suggest a moral hazard effect of flood mitigation leading to more people locating in flood-prone areas, increasing potential disaster costs. {\textcopyright} 2014 Wiley Periodicals, Inc.