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An Evaluation of the National Flood Insurance Program in Georgia

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  • Atreya, Ajita
  • Ferreira, Susana

Abstract

The NFIP has been a subject of tremendous interest since 2005 when it was flooded with claims from hurricanes Katrina and Rita, and was eventually drowned in debt. This paper focuses on the state of Georgia that has been neglected in terms of enforcing NFIP policies. We estimate a fixed effect model pooling the data from 1978-2010 across 153 counties in Georgia to determine the determinants that influence the decision to buy flood insurance. The empirical analysis supports the hypothesis that income and price significantly influences the decision to buy the flood insurance. Our empirical findings also suggest that recent flood event and the proportion of county in the floodplain has a significant positive impact on decision to buy flood insurance. Education level and age seemed to have a significant impact on one’s decision to buy flood insurance; however, race did not have a significant impact.

Suggested Citation

  • Atreya, Ajita & Ferreira, Susana, 2013. "An Evaluation of the National Flood Insurance Program in Georgia," 2013 Annual Meeting, February 2-5, 2013, Orlando, Florida 143046, Southern Agricultural Economics Association.
    • Handle: RePEc:ags:saea13:143046
    DOI: 10.22004/ag.econ.143046
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    References listed on IDEAS

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    1. 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.
    2. Kenneth A. Froot, 1999. "The Financing of Catastrophe Risk," NBER Books, National Bureau of Economic Research, Inc, number froo99-1.
    3. Erwann O. Michel‐Kerjan & Carolyn Kousky, 2010. "Come Rain or Shine: Evidence on Flood Insurance Purchases in Florida," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 77(2), pages 369-397, June.
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    Environmental Economics and Policy;

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