NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH
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Lars Lønstrup

Department of Business and Economics
University of Southern Denmark
Campusvej 55
5230 Odense M, Denmark

E-Mail: loe@sam.sdu.dk
Institutional Affiliation: University of Southern Denmark

NBER Working Papers and Publications

April 2019How the 1906 San Francisco Earthquake Shaped Economic Activity in the American West
with Philipp Ager, Katherine Eriksson, Casper Worm Hansen: w25727
This paper examines the long-run effects of the 1906 San Francisco Earthquake on the spatial distribution of economic activity in the American West. Using variation in the potential damage intensity of the earthquake, we show that more severely affected cities experienced lower population increases relative to less affected cities until the late 20th century. This long lasting effect is largely a result of individuals’ high geographical mobility at that time. Less affected areas became more attractive migration destinations in the immediate aftermath of the earthquake, which permanently changed the spatial distribution of economic activity in the American West.
 
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