Do floods have permanent effects? : evidence from the Netherlands

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 programme (Deltaworks), had a persisting positive effect on population growth. As a result, there has been an increase in population in flood prone areas.