Abstract
In this paper, it is investigated how the households sacrificed by the 2004 October flood in Toyooka City have procured the necessary liquidity for the recovery of their damaged assets. The necessary and available amounts of the liquidity for the recovery are simultaneously estimated by use of the sample selection model with the short-side principles to evaluate the shortage in the liquidity procured. As the results of our case study, it becomes clear that many households are faces with the liquidity constraints, which prevent them from setting up the sufficient money for their recovery. The shortage of the liquidity may cause the delay of the recovery processes and ended up with the long-run welfare loss of the households.
