Table 6

Fixed Effects Instrumental Variable Model: Impact of Public Assistance Grants on Household Flood Insurance Purchases

ln_policyln_coverageln_premiumln_take-up
ln_PA, t – 1–0.1463*** (0.0370)–0.1357*** (0.0377)–0.1214*** (0.0345)–0.1478*** (0.0373)
ln_IA, t – 1  0.1085** (0.0465)  0.0853* (0.0459)  0.0516 (0.0419)  0.1096** (0.0469)
Rain, t  0.0161** (0.0072)  0.0200*** (0.0073)  0.0218*** (0.0065)  0.0162** (0.0072)
Rain, t – 1  0.1069*** (0.0309)  0.1181*** (0.0321)  0.1307*** (0.0292)  0.1081*** (0.0311)
Rain, t – 2  0.0504*** (0.0115)  0.0531*** (0.0120)  0.0542*** (0.0110)  0.0505*** (0.0115)
Rain, t – 3–0.0053 (0.0055)–0.0010 (0.0056)–0.0010 (0.0051)–0.0055 (0.0055)
Income, t – 1  0.5738*** (0.1147)  0.8457*** (0.1239)  0.5389*** (0.1123)  0.5367*** (0.1157)
Loan, t – 1  0.0078 (0.0062)  0.0118* (0.0063)  0.0078 (0.0056)  0.0074 (0.0062)
Population, t – 1  0.6272*** (0.1549)  0.8446*** (0.1601)  0.6948*** (0.1453)–0.3153** (0.1572)
N34,36134,36134,36134,361
First-stage F-statistics for PA17.2617.2617.2617.26
First-stage F-statistics for IA11.8811.8811.8811.88
Hansen J0.0010.901.110.002
Hansen J p-value0.980.340.290.97
  • Note: In parentheses are standard errors clustered at the congressional district level. All the specifications include both year and county fixed effects. IA, Individual Assistance; PA, Public Assistance.

  • * p < 0.1;

  • ** p < 0.05;

  • *** p < 0.01.