Do Natural Disasters Stimulate Individual Saving? Evidence from a Natural Experiment in a Highly Developed Country

Arbeitspapier

While various empirical studies have found negative growth-effects of natural disasters, little is yet known about the microeconomic channels through which disasters might affect short- and especially long-term growth. This paper contributes to filling this gap in the literature by studying how natural disasters affect individual saving decisions. This study makes use of a natural experiment created by the European Flood of August 2002. Using micro data from the German Socio-Economic Panel that we combine with geographic flood data, we compare the savings behavior of affected and non-affected individuals by using a difference-in-differences approach. Our empirical results indicate that natural disasters depress individual saving decisions, which might be the consequence of a Samaritan`s Dilemma.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: CESifo Working Paper ; No. 5344

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Climate; Natural Disasters and Their Management; Global Warming ; Household Saving; Personal Finance ; Economic Development: Financial Markets; Saving and Capital Investment; Corporate Finance and Governance ; Disaster Aid
• Thema: natural disasters ; floods ; growth ; saving behavior ; difference-in-differences approach

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Berlemann, Michael ; Steinhardt, Max ; Tutt, Jascha
• Ereignis: Veröffentlichung
• (wer): Center for Economic Studies and ifo Institute (CESifo)
• (wo): Munich
• (wann): 2015

Weitere Informationen

• Handle: http://hdl.handle.net/10419/110834
• Letzte Aktualisierung: 10.03.2025, 11:41 MEZ