Suchergebnisse

AbstractPrevious literature has suggested that ad hoc disaster aid can crowd out demand for residential flood insurance. However, this phenomenon remains relatively unexplored in the agriculture insurance sector. In this paper, we focus on the most recent ad hoc disaster aid program for US agricultural producers, the Wildfire and Hurricane Indemnity Program Plus (WHIP+). Using county‐level data on WHIP+ payments, we find support for the program crowding out demand for crop insurance. However, we find the issue to be nuanced, noting that the demand response to WHIP+ payments is subject to heterogeneity across several dimensions including commodity, insurance plan, and coverage level.

AbstractPrevious research suggests that coastal housing values capitalize the quality of nearby beaches but note potential problems related to measurement errors and reverse causation due to beach replenishment. We offer the first hedonic analysis of communities not engaged in beach replenishment, obviating concern over reverse causation. Statistical evidence supports hedonic specifications that account for proximity to the shoreline, though marginal willingness to pay (WTP) varies with the specification. Using an instrumental variables approach, we find significant downward bias in ordinary least squares estimates of marginal WTP derived from the sale of vacant lots compared to two‐stage least squares estimates on the same vacant lots. Notably, we do not find evidence of the same downward bias in WTP derived from the sale of existing homes.

AbstractThis study examines the effects of the COVID‐19 pandemic on outdoor recreation trips and values using revealed preference data in the context of travel cost method. Demand models are estimated using data on pre‐ and postpandemic trips reported in a nationwide survey of recreation participants. The models incorporate related subjective risk perceptions as postpandemic measures of site quality and account for household‐level factors, pre‐existing conditions, and risk tolerance. Our results suggest that the pandemic had negative effects on recreation visits and values, with risk‐tolerant households and households with pre‐existing conditions taking more trips.