Nashville tornado-economic damage estimation using tax assessor and insurance data

There is no standard methodology for estimating economic damage due to a wind storm. This study seeks to apply a macro-environmental approach to estimate economic damage due to the April 16, 1998, Nashville Tornado. We estimate a dollar loss function using macro-environmental factors which affect the level of damage. The dollar and percent damage is regressed against distance from storm track, building class, and structural characteristics. Unexplained variation in damage is evaluated to identify environmental factors that contributed to destruction. This study explores the usefulness of tax assessor data and environmental factors in estimating dollar damage due to tornado. In addition, it contributes to the assessment of a new methodology for deriving credible economic damage functions. These economic damage functions are a component of careful cost/benefit analysis for mitigation policy.