Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/306363 
Year of Publication: 
2024
Series/Report no.: 
Discussion Paper No. 2024/4
Publisher: 
Freie Universität Berlin, School of Business & Economics, Berlin
Abstract: 
Recently, there is a growing interest in understanding how individuals adapt to changing climate conditions and climate-induced extreme weather events, An underexplored question is whether and how climate-related natural hazards affect household saving behavior, For this purpose, we exploit a natural experiment stemming from the European Flood of August 2002, Combining micro data with geo-coded flood maps allows us to analyze the causal impact of flood exposure on household savings within a differences-in-differences setting, We find that flood exposure depresses household saving behavior in the medium run, The most likely explanation is moral hazard induced by massive government support for affected households.
Subjects: 
Natural disasters
flood
saving behavior
natural experiment
JEL: 
D14
H84
Q54
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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