Learning about an Infrequent Event
Evidence from Flood Insurance Take-Up in the United States
Dados Bibliográficos
| ID | 19603268 |
|---|---|
| Autores | Justin Gallagher (0000-0002-3341-175X, Case Western Reserve University, autor correspondente) |
| Ano | 2014 |
| Volume | 6 |
| Fascículo | 3 |
| Páginas | 206-233 |
| Data de publicação | 2014-07-01 |
| Peer Reviewed | Sim |
| Open Access | Não |
| Tipo | ARTICLE |
| Periódico | American Economic Journal Applied Economics (JOURNAL) |
| Identificadores do periódico | ISSN: 1945-7790 • E-ISSN: 1945-7782 |
| Editora | American Economic Association (PUBLISHER • US) |
| DOI | 10.1257/app.6.3.206 |
| OpenAlex | W2041961720 |
| Idioma | EN |
| Citações recebidas | 70 |
| Referências 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
Natural disasters, social protection, and risk perceptions
Adapting to climate change accounting for individual beliefs
Do disaster experience and knowledge affect insurance take-up decisions
Climate gentrification in Miami
The effect of past health events on intentions to purchase insurance
Alternative investment behavior of households during crises
Rising sea levels and sinking property values
Rail accidents and property values in the era of unconventional energy production
Market tremors
Drought Exposure and Accuracy
Pretest with Caution
Estimating dynamic treatment effects in event studies with heterogeneous treatment effects
Impact of the 2011 earthquake on the real estate market in Tokyo
Not too much nor too little
CEO’s Childhood Experience of Natural Disaster and CSR Activities
Capital as an anchor of agricultural employment
The impact of natural disasters on rental markets
The impact of natural disasters on firm search orientation
Behavioural public policy for natural disaster preparedness and the role of economic experiments
Can major public health emergencies increase the participation of commercial insurance? Evidence from China
Impact of post-disaster federal assistance on the national flood insurance program
Source of fatalistic seismic belief
How do floods affect insurance demand? Evidence from flood insurance take-up in Japan
(Im)balance in household balance sheet in the aftermath of a natural disaster
Designing insurance for climate change
Managed Retreat in the Face of Climate Change
Do firms hedge against political tensions? Evidence from Chinese food importers of Norwegian salmon
Early-life disaster experience and commercial insurance demand
Natural disasters, salience and public support for climate change policy
How did consumers react to the Covid‐19 pandemic over time
Economic diversification and the resiliency hypothesis
Fire protection services and house prices
Perspectives of Southwest Florida Homeowners and Real Estate Agents before Hurricane Ian
Natural disasters, public housing, and the role of disaster aid
Damage versus risk perception
Quantifying the impacts of climate shocks in commercial real estate markets
Wildfire risk, salience, and housing development in the wildland–urban interface
Toward Better Management of Flood Losses
The effect of flood experience on household mitigation—Evidence from longitudinal and insurance data
How do different compensation schemes and loss experience affect insurance decisions? Experimental evidence from two independent and heterogeneous samples
Investment, insurance and weather shocks
Climate change and its impact on home insurance uptake in Australia
Flood shocks, heterogeneous risk exposure, and housing market dynamics in China
Household risk strategies during a pandemic – experiences from the 1918 influenza pandemic
Do political protests mobilize voters? Evidence from the Black Lives Matter protests
Large Fires and the Rise of Fire Insurance in Early Twentieth-Century Japan
Limited effects of tree planting on forest canopy cover and rural livelihoods in Northern India
Catastrophe’s long reach
Learning about an Infrequent Event
Climate Risk and Preferences over the Size of Government
Coronavirus Fears and Macroeconomic Expectations
Motivation Crowding in Peer Effects
Coronavirus Perceptions and Economic Anxiety
Impacts of flood zoning policies on housing markets
Les réponses budgétaires des municipalités aux catastrophes naturelles
Government emergency budgeting and disaster impact
Do Government Audits Reduce Corruption? Estimating the Impacts of Exposing Corrupt Politicians
Mandated vs. Voluntary Adaptation to Natural Disasters
Small Business vulnerability to floods and the effects of disaster loans
The effect of flood mitigation spending on flood damage
Disaster risk reduction among households exposed to landslide hazard
The behaviour of property prices when affected by infrequent floods
Serial Position Bias Among Experts
Seeking shelter in times of crisis? unemployment, perceived job insecurity and trade union membership
Audits and Government Hiring Practices
Understanding the migratory response to hurricanes and tropical storms in the USA
National Institutions and Self-Insurance
The Democrat Disaster
The gift of mobility
Enhancing Disaster Resilience
Mitigating disaster losses through insurance
Learning and Wage Dynamics
Changes in implicit flood risk premiums
Multivariate regression models for panel data
On the Covariance Structure of Earnings and Hours Changes
Experience-weighted Attraction Learning in Normal Form Games
Depression Babies
The Demand for Flood Insurance
The Effect of Newspaper Entry and Exit on Electoral Politics
Learning about an Infrequent Event
The Fox News Effect
Exposing Corrupt Politicians
Does the Media Matter? A Field Experiment Measuring the Effect of Newspapers on Voting Behavior and Political Opinions
Consistent Covariance Matrix Estimation with Spatially Dependent Panel Data
Going home after Hurricane Katrina
Press Coverage and Political Accountability
Television and the Incumbency Advantage in U.S. Elections
Catastrophe Economics
The Roepke Lecture in Economic Geography Catastrophic Earthquake Insurance
| Obras citantes distintas | 70 |
|---|---|
| Citações por ano | 5,83 |
| Intervalo de citações | 2014 - 2026 (13) |
| Velocidade de citação | current |
| Altamente citado | Não |
| Tipos de citação | Neutras: 61 |