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Paper eres2013_32:
Valuing the Risk of Imperfect Information: Christchurch Earthquake

id eres2013_32
authors Logan, Callum
year 2013
title Valuing the Risk of Imperfect Information: Christchurch Earthquake
source Book of Proceedings of 20th Annual European Real Estate Society Conference in Vienna, Austria (ISBN: 978-3-85437-323-0), pp. 123-132
summary Purpose - This is a background discussion and literature review relating to the application of methods to measure the impact of a significant earthquake event on house prices. The purpose of this review is to select an appropriate methodology to be applied to the assessment of earthquake impacts on Christchurch house prices. The results of this review will form part of a further research paper.Approach - Previous literature specific to hedonic modelling of earthquake events and their impact on housing is limited. Therefore, a wider review of natural disaster events and types of methodologies used are undertaken in this paper.Findings - The Christchurch earthquake land zoning process combined with government compensation that followed the 2010 earthquake is unique. The literature review suggests that a hedonic pricing modelling using a Difference-in Difference specification may be the most appropriate model for an event of this nature. Value of research - It is anticipated that the outcomes of the proposed further research will assist in the identification of risk management strategies for the insurance industry, central and local governments. This type of research also has relevance for other earthquake prone cities as well and the methodologies could also be applied to other natural disaster risks such as floods, hurricane and storm surge risk zones along coastlines.
keywords Earthquake, Price adjustment, Risk, Compensation, Housing
series ERES:conference
type paper session
email callum.logan@rmit.edu.au
more http://library.eres.org/cgi-bin/rsa98.pl?conf=ERES2013&type=session&theme=F&slot=6701
content file.pdf (3,377,469 bytes)
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ratings
session F-8: Environmental Risks
last changed 2014/10/21 21:51
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