Learning about an Infrequent Event
Evidence from Flood Insurance Take-Up in the United States
Datos Bibliográficos
| ID | 19603268 |
|---|---|
| Autores | Justin Gallagher (0000-0002-3341-175X, Case Western Reserve University, autor de correspondencia) |
| Año | 2014 |
| Volumen | 6 |
| Número | 3 |
| Páginas | 206-233 |
| Fecha de publicación | 2014-07-01 |
| Peer Reviewed | Sí |
| Open Access | No |
| Tipo | ARTICLE |
| Revista | American Economic Journal Applied Economics (JOURNAL) |
| Identificadores de la revista | ISSN: 1945-7790 • E-ISSN: 1945-7782 |
| Editorial | American Economic Association (PUBLISHER • US) |
| DOI | 10.1257/app.6.3.206 |
| OpenAlex | W2041961720 |
| Idioma | EN |
| Citas recibidas | 70 |
| Referencias citadas | 30 |
I examine the learning process that economic agents use to update their expectation of an uncertain and infrequently observed event. I use a new nation-wide panel dataset of large regional floods and flood insurance policies to show that insurance take-up spikes the year after a flood and then steadily declines to baseline. Residents in nonflooded communities in the same television media market increase take-up at one-third the rate of flooded communities. I find that insurance take-up is most consistent with a Bayesian learning model that allows for forgetting or incomplete information about past floods. (JEL D12, D83, D84, G22, Q54)
Actuarial science · Cognitive psychology · Economics · Flood myth · Forgetting · Geography · Political science · Agricultural risk and resilience · Flood Risk Assessment and Management · Media Influence and Politics · Psychology
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| Obras citantes distintas | 70 |
|---|---|
| Citas por año | 5,83 |
| Intervalo de citas | 2014 - 2026 (13) |
| Velocidad de citación | current |
| Altamente citado | No |
| Tipos de cita | Neutras: 61 |