2019/04/03 by Yau-Huo (Jimmy) Shr, Yau‐Huo Shr, Katherine Y. Zipp · 3 citations
Agricultural and Biological Sciences · Economics, Econometrics and Finance · Environmental Science · #Agricultural risk and resilience #Flood Risk Assessment and Management #Insurance and Financial Risk Management
paper · doi:10.3368/le.95.2.174
crossref issued 2019/04/03 · crossref published 2019/04/03 · crossref published-online 2019/04/03 · openalex publication_date 2019/04/03 · crossref created 2019/04/03 · crossref published-print 2019/05/01 · crossref deposited 2023/07/07 · openalex created_date 2025/10/10 · crossref indexed 2026/07/27 · openalex updated_date 2026/07/31
We propose a theoretical framework characterizing (1) the attenuation of flood risks revealed by the flood zone designation in flood insurance rate maps and (2) the asymmetric impacts of adding versus removing flood zone status on property values. We apply spatial fixed effects models to empirically investigate the impacts of flood zone status and test the proposed theory. The results indicate that housing values decrease by more than 11% when a property is assigned into a flood zone. However, property values do not rebound when flood zone status is removed. <i>(JEL Q51)</i>