Catastrophe-Induced Destruction and Reconstruction

This study examines the destruction caused by the May 3, 1999 Oklahoma City tornado and the rebuilding process using panel data techniques. The results indicate that, within 3years, the average property value of the damaged cohort exceeded the undamaged group. We use a unique data set that includes individual Fujita-scale damage assessments from Texas Tech University in conjunction with estimates of market value provided by the Oklahoma County Tax Assessor. We estimate the relationship between the Fujita-scale damage assessment and the monetary loss in market value. Our results suggest that the greatest opportunity to reduce monetary losses from tornado damage is for low-intensity tornadoes. Further, at damage ratings of F1 and higher, research should be directed toward life safety measures.