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Redistributional Effects of the National Flood Insurance Program


  • Okmyung Bin

    (Department of Economics, East Carolina University, Greenville, NC, USA)

  • John A. Bishop

    () (Department of Economics, East Carolina University, Greenville, NC, USA)

  • Carolyn Kousky

    (Resources for the Future, Washington, DC, USA)


This study examines the redistributional effects of the National Flood Insurance Program (NFIP) using a national database of premium, coverage, and claim payments at the county level between 1980 and 2006. Measuring progressivity as the departure from per capita county income proportionality, the authors find that NFIP premiums are typically proportional if the time horizon is extended beyond a single year, while claim payments are moderately progressive over all time horizons studied. The net effect of the NFIP program, defined as indemnity payments net of premiums, indicates that NFIP is proportional or at most mildly progressive, while the effect is modest. In sum, the authors find no evidence that the NFIP disproportionally advantages richer counties.

Suggested Citation

  • Okmyung Bin & John A. Bishop & Carolyn Kousky, 2012. "Redistributional Effects of the National Flood Insurance Program," Public Finance Review, , vol. 40(3), pages 360-380, May.
  • Handle: RePEc:sae:pubfin:v:40:y:2012:i:3:p:360-380

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    Cited by:

    1. Sally Owen & Ilan Noy, 2017. "The Unfortunate Regressivity of Public Natural Hazard Insurance: A Quantitative Analysis of a New Zealand Case," CESifo Working Paper Series 6540, CESifo Group Munich.
    2. Frimpong, Eugene & Petrolia, Daniel, 2016. "Community-level Flood Mitigation Effects on Household Flood Insurance and Damage Claims," 2016 Annual Meeting, February 6-9, 2016, San Antonio, Texas 230129, Southern Agricultural Economics Association.
    3. Frimpong, Eugene & Petrolia, Daniel & Harri, Ardian, 2017. "Community-level flood mitigation effects on household-level flood insurance and damage claims payments," Working Papers 254075, Mississippi State University, Department of Agricultural Economics.


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