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Measuring the impacts of the national flood insurance program

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  • Howard II., James P.

Abstract

The National Flood Insurance Program was established in 1968 as a federally administered insurance program to reduce costs to the federal government for flood recovery and allocate recovery costs among potential disaster relief beneficiaries. Participants purchase flood insurance through participating property insurance providers which receive a haircut of the premium for overhead costs and passes the remainder to the Federal Emergency Management Agency. This paper outlines a model to measure the net social benefits attributable to the insurance component of the NFIP. Development of this model provides the baseline for further economic and social analysis of the NFIP.

Suggested Citation

  • Howard II., James P., 2012. "Measuring the impacts of the national flood insurance program," MPRA Paper 37758, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:37758
    as

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    File URL: https://mpra.ub.uni-muenchen.de/37758/1/MPRA_paper_37758.pdf
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    References listed on IDEAS

    as
    1. Raj Chetty, 2009. "Sufficient Statistics for Welfare Analysis: A Bridge Between Structural and Reduced-Form Methods," Annual Review of Economics, Annual Reviews, vol. 1(1), pages 451-488, May.
    2. Kenneth A. Froot, 1999. "The Financing of Catastrophe Risk," NBER Books, National Bureau of Economic Research, Inc, number froo99-1, July.
    3. Scott Farrow & Michael Scott, 2011. "Estimating The Ex-Ante Willingness to Pay for Flood Protection," UMBC Economics Department Working Papers 11-131, UMBC Department of Economics.
    4. David Moss, 1999. "Courting Disaster? The Transformation of Federal Disaster Policy since 1803," NBER Chapters, in: The Financing of Catastrophe Risk, pages 307-362, National Bureau of Economic Research, Inc.
    5. William H. Desvousges & F. R. Johnson & H. S. Banzhaf, 1998. "Environmental Policy Analysis With Limited Information," Books, Edward Elgar Publishing, number 1328.
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    More about this item

    Keywords

    flood insurance; disaster management; benefit-cost analysis; social surplus; risk management;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate

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