Environmental and Resource Economics

, Volume 43, Issue 3, pp 333–350 | Cite as

Creative Disasters? Flooding Effects on Capital, Labour and Productivity Within European Firms

  • Andrea M. Leiter
  • Harald Oberhofer
  • Paul A. Raschky


This paper examines the impact of floods on the firms’ capital accumulation, employment growth and productivity by using a difference-in-difference (DID) approach and considering the firms’ asset structure. We find evidence that, in the short run, companies in regions hit by a flood show on average higher growth of total assets and employment than firms in regions unaffected by flooding. The positive effect prevails for companies with larger shares of intangible assets. Regarding the firms’ productivity a negative flood effect is observable which declines with an increasing share of intangible assets.


Climate change Natural disasters Firm growth Productivity Difference-in-difference 

JEL Classification

D24 Q54 R10 C21 


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Copyright information

© Springer Science+Business Media B.V. 2009

Authors and Affiliations

  • Andrea M. Leiter
    • 1
  • Harald Oberhofer
    • 1
  • Paul A. Raschky
    • 2
    • 3
  1. 1.Department of Economics, Faculty of Economics and StatisticsUniversity of InnsbruckInnsbruckAustria
  2. 2.Department of Public Finance, Faculty of Economics and StatisticsUniversity of InnsbruckInnsbruckAustria
  3. 3.alpS, Center for Natural Hazard ManagementInnsbruckAustria

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