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Changing climate, changing behavior: adaptive economic behavior and housing markets responses to flood risks
| Okmyung Bin1, and Tatiana Filatova2 1) Department of Economics, Thomas Harriot College of Arts and Sciences, East Carolina University, Greenville, North Carolina 27858-4353, USA 2) Centre for Studies in Technology and Sustainable Development, University of Twente, 7500 AE Enschede, NL |
Spatial econometrics and analytical spatial economic modeling advanced significantly in the recent years. Yet, methodologically they are designed to tackle marginal changes in the underlying dynamics of spatial urban systems. In the world with climate change, however, abrupt sudden non-marginal changes in economic system are expected. We address this gap by integrating adaptive expectations about land market dynamics and hedonic analysis of housing market dynamics in flood-prone areas within a spatial agent-based land market model for a coastal housing market in North Carolina.