SAFE-ICIR Research Seminar: Does National Flood Insurance Program Participation Induce Housing Development?
The event is co-organized with the International Center for Insurance Regulation (ICIR).
Speaker: Mark Browne, Ph.D., Professor at the School of Risk Management, Insurance and Actuarial Science, St. John’s University in New York
Abstract: This study provides estimates of the economic effects of the National Flood Insurance Program on housing development. We estimate the response of county-wide housing development in Florida to community-level participation in the program, and find that housing permits and starts were up to 30 percent higher in member communities compared to non-members. The increase in development is driven by housing activity in non-coastal counties; we find statistically significant evidence that housing construction decreased in coastal counties where greater flooding is expected. Using participation in a second program, the Community Rating System, we report evidence suggesting that more stringent building code compliance costs may explain this result.
Faculty, graduate students, and researchers at Goethe University as well as interested researchers from the area are cordially invited to attend at no cost. Registration is not required.