Table 7

Fixed Effects Instrumental Variable Model: Impact of Public Assistance Grants (by Type) on Flood Insurance Purchases

ln_policyln_coverageln_premiumln_take-up
Panel A. PA Grants for Permanent Works
ln_PApermanent, t – 1–0.1807*** (0.0533)–0.1535*** (0.0507)–0.1356*** (0.0464)–0.1828*** (0.0539)
ln_IA, t – 1  0.1053** (0.0533)  0.0705 (0.0498)  0.0369 (0.0456)  0.1066** (0.0539)
Rain, t  0.0274*** (0.0082)  0.0298*** (0.0080)  0.0304*** (0.0073)  0.0276*** (0.0083)
Rain, t – 1  0.1522*** (0.0414)  0.1531*** (0.0402)  0.1611*** (0.0368)  0.1541*** (0.0417)
Rain, t – 2  0.0567*** (0.0142)  0.0562*** (0.0137)  0.0567*** (0.0126)  0.0569*** (0.0143)
Rain, t – 3  0.0030 (0.0049)  0.0070 (0.0047)  0.0062 (0.0044)  0.0028 (0.0050)
Income, t – 1  0.5715*** (0.1270)  0.8276*** (0.1283)  0.5206*** (0.1173)  0.5347*** (0.1281)
Loan, t – 1  0.0069 (0.0067)  0.0109* (0.0064)  0.0070 (0.0058)  0.0065 (0.0068)
Population, t – 1  0.6796*** (0.1602)  0.9223*** (0.1573)  0.7681*** (0.1432)–0.2628 (0.1621)
N34,35834,35834,35834,358
First-stage F-statistics for PA grants12.2412.2412.2412.24
First-stage F-statistics for IA grants11.8711.8711.8711.87
Hansen J1.173.96**4.14**1.14
Hansen J p-value0.280.050.040.29
Panel B. PA Grants for Emergency Works
ln_PAemergency, t – 1–0.1430*** (0.0321)–0.1350*** (0.0337)–0.1211*** (0.0310)–0.1444*** (0.0323)
ln_IA, t – 1  0.0946** (0.0379)  0.0748* (0.0382)  0.0425 (0.0351)  0.0956** (0.0382)
Rain, t  0.0126** (0.0064)  0.0167** (0.0066)  0.0188*** (0.0060)  0.0127** (0.0064)
Rain, t – 1  0.0674*** (0.0249)  0.0817*** (0.0261)  0.0981*** (0.0240)  0.0683*** (0.0250)
Rain, t – 2  0.0396*** (0.0090)  0.0433*** (0.0096)  0.0456*** (0.0089)  0.0396*** (0.0090)
Rain, t – 3–0.0017 (0.0045)  0.0021 (0.0047)  0.0018 (0.0043)–0.0019 (0.0045)
Income, t – 1  0.5596*** (0.0977)  0.8358*** (0.1126)  0.5304*** (0.1005)  0.5224*** (0.0984)
Loan, t – 1  0.0077 (0.0057)  0.0118** (0.0059)  0.0078 (0.0052)  0.0072 (0.0057)
Population, t – 1  0.7093*** (0.1289)  0.9152*** (0.1380)  0.7573*** (0.1258)–0.2323* (0.1308)
N34,36134,36134,36134,361
First-stage F-statistics for PA grants21.8821.8821.8821.88
First-stage F-statistics for IA grants11.8811.8811.8811.88
Hansen J0.110.580.780.12
Hansen J p-value0.740.450.380.72
  • 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.