Does National Flood Insurance Program Participation Induce Housing Development?

35 Pages Posted: 4 Oct 2017

See all articles by Mark J. Browne

Mark J. Browne

St. John's University - Peter J. Tobin College of Business

Carolyn A. Dehring

University of Georgia - Department of Insurance, Legal Studies, Real Estate

David L. Eckles

University of Georgia - Department of Insurance, Legal Studies, Real Estate

William D. Lastrapes

University of Georgia - C. Herman and Mary Virginia Terry College of Business - Department of Economics

Date Written: October 3, 2017

Abstract

We estimate the effects on county-wide housing development in Florida of community-level participation in the National Flood Insurance Program using panel data methods and observed variation in the timing of the decision to join the program. We find that program participation increased housing starts and permits in non-coastal counties, while coastal counties with average flood-zone acreage saw signi ficant declines in housing activity. We conjecture that loss-mitigating regulatory costs, an obligation of obtaining insurance, might explain these findings.

Keywords: Disaster aid, flood insurance, development, housing supply

JEL Classification: D8, H4, H5

Suggested Citation

Browne, Mark J. and Dehring, Carolyn A. and Eckles, David L. and Lastrapes, William D., Does National Flood Insurance Program Participation Induce Housing Development? (October 3, 2017). Available at SSRN: https://ssrn.com/abstract=3047411 or http://dx.doi.org/10.2139/ssrn.3047411

Mark J. Browne (Contact Author)

St. John's University - Peter J. Tobin College of Business ( email )

New York, NY
United States

Carolyn A. Dehring

University of Georgia - Department of Insurance, Legal Studies, Real Estate ( email )

Athens, GA 30602-6255
United States
706-542-3809 (Phone)

David L. Eckles

University of Georgia - Department of Insurance, Legal Studies, Real Estate ( email )

Athens, GA 30602-6254
United States

William D. Lastrapes

University of Georgia - C. Herman and Mary Virginia Terry College of Business - Department of Economics ( email )

Terry College of Business
Athens, GA 30602-6254
United States
706-542-3569 (Phone)
706-542-3376 (Fax)

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