THE EFFECT OF POST-SANDY NYC SUBWAY RENOVATIONS ON HOUSEHOLD INCOME

On October 29, 2012, Hurricane Sandy struck New York City for 48 hours straight. The storm caused an estimated $19 billion in damage and negatively impacted economic activity in the city. The MTA suffered extensive damage, estimated at $5 billion, forcing it to set aside approximately $7.6 billion for Sandy-related projects. The Capstone team investigated whether the post-Sandy renovations in the New York City Subway System influenced median household income levels within a 0.25-mile radius of the renovated station. Based on existing research on the impact of public transportation, the team hypothesized that income levels in neighboring communities increased after the renovations were completed. Using two-way fixed effects to implement a difference-in-differences model that accounts for differences in treatment time, the preliminary findings confirmed the hypothesis.