RT Journal Article SR Electronic T1 Does Governmental Assistance Affect Private Decisions to Insure? An Empirical Analysis of Flood Insurance Purchases JF Land Economics JO Land Econ FD University of Wisconsin Press SP 124 OP 145 DO 10.3368/le.95.1.124 VO 95 IS 1 A1 Davlasheridze, Meri A1 Miao, Qing YR 2019 UL http://le.uwpress.org/content/95/1/124.abstract AB In this paper, we empirically examine whether the Federal Emergency Management Agency’s Public Assistance (PA) program, which targets postdisaster cleanup and infrastructure rehabilitation, affects household purchases of flood insurance. Using the fixed-effects model with instrumental variables to address the endogeneity of disaster aid, we find that increased PA grants reduce a county’s flood insurance take-up rates, thereby driving down its total insurance coverage and premiums paid. Our findings provide empirical evidence on the crowding-out effect of public disaster programs, and shed light on their implicit social costs and increased federal financial exposure to natural disasters and climate change. (JEL Q54, Q58)