How did Hurricane Sandy affect the economic development of the areas it struck? Using observed wind speed, I apply a difference in differences approach to estimate the causal effect of Sandy on economic growth. I do not find significant evidence that Hurricane Sandy led to negative or positive growth changes within the counties it affected in Delaware, Maryland, New Jersey, New York and Pennsylvania. This paper further explores if Sandy catalyzed structural economic change, measured by the fraction of GDP occupied by construction and recreational industries. I find that Sandy had little effect on the construction share, but permanently stunted the recreational share of GDP.
