RT Journal Article
SR Electronic
T1 Flood Risk Perceptions: Accuracy, Determinants, and the Role of Probability Weighting
JF Land Economics
FD University of Wisconsin Press
SP 478
OP 504
DO 10.3368/le.100.3.120722-0101R
VO 100
IS 3
A1 Turner, Dylan
A1 Landry, Craig E.
YR 2024
UL http://le.uwpress.org/content/100/3/478.abstract
AB This study analyzes survey data of U.S. East Coast homeowners to characterize accuracy and determinants of homeowner flood risk (mis)perceptions. Using an array of instruments, we assess subjective risk perceptions and compare them with objective risk estimates. Reduced-form regressions suggest flood experience, worry, and flood zone classification influence relative perceptions of risk. Common probability weighting functions do not fit the divergence in risk perceptions, suggesting that the source of the probability distortions is most likely due to misperceiving the true risk rather than a widespread behavioral heuristic.