This paper uses one of the strongest hurricanes to hit the US, Andrew in 1992, to define a
quasi-random experiment that permits estimation of the responses of housing values to
information about new hurricanes. Lee County, Florida did not experience damage from
Andrew. The storm was a “near-miss.” We hypothesize that Andrew conveyed risk
information to homeowners in the county. A difference-in-differences (DND) framework
identifies the effect of this information on property values in areas likely to experience …